TVS Motor Reports Impressive Q1FY24 Performance, Plans to Expand EV Portfolio

25 Jul 2023 , 01:08 PM

TVS Motor, a leading manufacturer of two- and three-wheelers, has reported a remarkable performance in the first quarter of the fiscal year 2023-24 (Q1FY24). The company’s Chief Financial Officer, K. Gopala Desikan, attributed the success to a combination of factors.

TVS Motor’s operating Ebitda (earnings before interest, taxes, depreciation, and amortization) surged by 60 basis points from the previous year, reaching 10.6% in Q1FY24. This growth was driven by the company’s increased market share and efforts to reduce material costs.

The company’s revenue in Q1FY24 stood at Rs 7,218 crore, representing an impressive 20% growth compared toRs 6,009 crore in the same period last year.

Despite the recent slowdown in electric two-wheeler sales following the reduction of incentives under the FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) scheme by the government, TVS Motor remains optimistic about the performance of its electric scooter, iQube. The company aims to deliver over 25,000 units of the iQube in August.

TVS Motor is actively expanding its distribution network for electric vehicles (EV) and aims to double its touch-points from just over 300 to over 600 by the end of FY23.

The company plans to enhance its EV portfolio and intends to launch new models in the 5kWh to 25KWh battery ranges, with some models set to be released in the September quarter. TVS is scheduled to unveil an e-two-wheeler on 28 August in Dubai, along with new premium motorcycles in the upcoming quarters.

K. Gopala Desikan reaffirmed TVS Motor’s commitment to achieving 25,000 sales of the iQube in August. The company is working on increasing the availability of the iQube and has already begun retailing it in Nepal. It also has plans to enter international markets later this year.

Based on the available data, In the April-June quarter, TVS Motor’s iQube sales reached 39,000 units. Overall, the company’s two- and three-wheeler sales, including exports, grew by 5%, reaching 953,000 units compared to 907,000 units in Q1FY23. Motorcycle sales increased by 7% to 463,000 units, while scooter sales saw an 11% growth, totaling 350,000 units.