:TVS MOTORS:

The Past
TVS Motor Company announced positive results for the financial year 2013-14. New launches and
upgrades which the company introduced across the scooter and motorcycle segments augmented an
increase in sales, aiding significant bottom line growth. During the year, the company strengthened its
presence in the scooter segment introducing TVS Jupiter, styled to enthuse the male customer. TVS
Jupiter went on to become the most awarded scooters in India. TVS Motor Co. Ltd is riding high on
the success of Jupiter, The company registered a 10% volume growth in the March quarter. More
than 70% of the incremental growth in sales volumes came from scooters. As the company launched
Jupiter in new cities, scooter sales jumped 38% in the last quarter. Excluding scooters, volume growth
would have been a mere 3.5%.[1]
Keeping true to its promise of launching a new two wheeler every three months and widening its
portfolio in the low end motorcycle segment, TVS Motor Company on May 5 2014, introduced an
upgraded variant of its 110cc motorcycle StaR City, the StaR City, here targeted at the mileage
conscious customers at 86Kmpl. Currently, the Chennai-based TVS Motor Company offers Star City,
Sport, in entry level segment, 125cc Phoenix and high end Apache RTR series. It also sells
scooterettes -- Jupiter, Wego, Scooty Streak and Scooty Pep . In the moped range, it sells TVS XL
Super, XL Heavy duty and autorickshaw TVS King.[2]
In the three wheeler segment TVS has shown an average 6-15% growth year on year since 2011 and
looks poised to gain more traction Exports were strong. Compared with the March quarter of 2012-13,
exports on an average grew 33%. On a lower base, three-wheeler sales also rose at a robust pace of
50%. The strong growth in three-wheelers (which are high-value products) and exports helped the
company improve overall realizations and they were able to offset the economic slowdown and show
profits.[3]
The company's total revenue increased by 11%, growing from Rs 7169 crores in the year ended
March 2013 to Rs. 7962 crores for the year ended March 2014.
TVS Motor Company reported a 15.41 per cent increase in its total sales at 1,90,683 units in April
2014. It sold 1,65,214 units in the same month last year.[4]

The Present

[5]

TVS has showed the most promise to investors with frequent launch of low maintenace high mileage
models rivalling offerings from market leader Hero Honda along with a worthy enough competitor to
the scooter market leader Honda activa in scooter of the year TVS Jupiter. It has positioned itself
along all segments and seems poised to gain good market share in face of hero honda and bajaj
posting average results, growth of TVS has been the highest in all auto and two wheeler
manufacturers and it is currently the industrys poster child as proven by a 52 week high of 128 Rs.[6]
The Future
The company after introducing its all new TVS StaR City+ will also introduce a new scooty: TVS Zest
during the course of the year.. In addition to these new launches, the company has also planned
upgrades across segments to strengthen the product portfolio with the new Victor expected in four
months. With improved product presence in various segments of the industry, TVS Motor Company
expects to better its performance in the ongoing fiscal.[7]
The apache series faces much competition from direct rivals yamaha, bajaj,honda and Hero motors
but due to a tie up with German BMW Motorrad, TVS looks set to offer two high end motorcycles in
the sub 500 cc segment with the 350cc model coming in H2 2015 with development and design
codeveloped with BMW, the draken concept displayed at auto expo 2014 got rave reviews. For
catering to the vacant high end segment they are setting up a plant for manufacturing these bikes in
mysore at 142 crores of investment.[8]
The company has shown growth with investment into new facilities lined up at a cost of 250crores
capex. TVS Motor Co.s sales volume is likely to expand at a 8% compounded annual growth rate
(CAGR) in 2014-16, driven by scooter sales, which translates into growth of 20% CAGR in companys
net profit over the same period, and revival of the market and economy due to the shift in governance
and favorable policies expected.[9]
Whats going good for TVS:

Better TQM implementations and channel building along with cost reduction
Strong innovation and faster upgrades
Strong brands that resonate with their customers
Exports will be a significant growth engine
Entry into three wheeler has enhanced product portfolio
[10]

With a market penetration of 7% for two wheelers and growing incomes and other brands not able to
connect with the masses, TVS shows great promise as a challenger brand with its innovative
offerings.