TVS lines up Rs 700-cr capex for FY23

TVS Motor Company, India’s third-largest scooter and motorcycle maker, has lined up a capital expenditure (Capex) of INR 700 crore for FY23 to accelerate the launch of new products and increase production capacity. This will also include investments in future mobility areas, a senior company official said while addressing analysts. The Chennai-based two and three-wheeler manufacturer will start rolling out new products by the end of first quarter of FY23 and is also readying a slew of electric vehicles (EV) for launch, details of which will be shared closer to their launch dates.

“In this financial year we will be launching a series of new products focusing on different customer segments. The company is readying a complete portfolio of two-wheeler and three-wheeler in the range of 5Kw to 25 Kw all of which will be in the market within the next 8 quarters. First of these products will be launched in Q1 FY23. Capex for FY23 will be around INR 700 crore,” K N Radhakrishnan, Director and Chief Executive Officer, TVS.

Radhakrishnan said the company has received bookings of 12,000 units for its electric two-wheeler, iQube, its sole EV product. “We are present in 33 cities and so far we have sold 12,000 units of iQube,” he added. The company is looking at expanding its EV capacity to 10,000 units a month by the end of first quarter FY23 and scaling it up further throughout the financial year. TVS Motor has collaborated with Jio-BP, Tata Power and CESL for a charging network and other infrastructure development.

“Most of the technology used in the EV and premium products is developed in-house with partners, which is the biggest differentiator,” Radhakrishnan said. About the performance of the existing product line, Radhakrishnan said that the company is witnessing strong demand for TVS Raider and TVS Jupiter 125 and also holds a strong order book for these two models. “With a strong portfolio of products like Apache, Raider, Ntorq and new launches lined up for this year, we are confident that we will grow ahead of the industry both in domestic and international markets,” he noted.

During the financial year 2021-2022, the company’s domestic sales were at 20.5 lakh units with a market share of about 17%. In the same year, TVS achieved its highest-ever exports of 10.9 lakh units. The company’s total sales during the year rose by 8% to 33.10 lakh units. It was at 30.52 lakh units in 2020-21. On the financial front, TVS Motor Company reported a 14% decline in consolidated net profit at INR 274.67 crore for the fourth quarter ended March 31, 2022. The company had posted a consolidated net profit of INR 319 crore in the same period year ago. Its revenue from operations, however, rose to INR 6,585 crore during the period under review, as against INR 6,132 crore a year ago.