TVS Motor Co. is set to expand its electric vehicle (EV) manufacturing capacity and increase its EV product line-up as it eyes new international markets. The company plans to export electric vehicles this fiscal year, targeting developed markets such as those in Europe, where it already has a presence through its investments in SEMG and Norton Motorcycles.
Although the company did not specify which products it will export or which countries it will target, TVS has existing export markets for its internal combustion-engine products in the ASEAN region. It will also continue to invest in new products, with several launches planned for EV and internal combustion-engine variants this fiscal year.
TVS will enhance the volume of its existing products, such as the Ronin and Jupiter, while focusing on premium products, cost reductions, and fixed cost reductions. The company aims to deliver better earnings before interest, taxes, depreciation, and amortization in fiscal year 2024 and outperform the industry.
The Tamil Nadu-based two-wheeler manufacturer plans to increase the production of its iQube electric scooter this month, following a 48% decline in April volumes due to component shortages and migration to the AIS-156 safety standards for EVs and EV batteries under the Central Motor Vehicle Rules.
TVS also plans to launch its first electric three-wheeler for cargo and passengers in the next quarter and expand its range of e-two wheelers across a range of battery capacities and price points in the next 9-15 months.
According to K. Gopala Desikan, TVS’s Chief Financial Officer, the iQube currently has an order book of 30,000 vehicles, and the company has the opportunity to scale up to much higher capacities in EVs. The company will also enter new segments and ensure it gets its new products right.
TVS said net profit for the quarter ended 31 March rose by 49.5% to ₹410.27 crore, up from ₹274.50 crore a year earlier. Consolidated revenue from operations grew 19.4% to ₹6,604.78 crore during the quarter, compared to ₹5,530.31 crore in the previous year.
Operating EBITDA for the fourth quarter rose by 22% to ₹680 crore, a 10.3% increase compared to ₹557 crore in the corresponding quarter last fiscal, the company said in a filing to stock exchanges.
TVS said it had seen a good pick-up in demand but continued to see challenges from the rural segment, which primarily drives the sales of entry-level two-wheelers. “Overall, we see very good pick-up, but the challenge is in rural (market). We will see sentiments coming back if monsoon is better. 125cc market doing extremely well as industry,” Desikan said.
With the company’s commitment to expanding its EV manufacturing capacity and increasing its EV product line-up, it is sure to take advantage of the growing demand for electric vehicles in international markets.