Copyright FOURIN, Inc. 2023
TVS Motor Re-enters the Electric Motorcycle Market, Strengthens Presence in the Premium Sector
TVS Motor, an Indian multinational motorcycle company, is exploring new markets by introducing new products and technologies and strengthening exports to global markets. TVS Motor's motorcycle sales in India decreased 14.5% year-on-year to 2.69 million units in 2019 due to market contraction. Although sales decreased significantly in 2020 due to the spread of the new coronavirus, the company’s market share remained at 13–15%, maintaining third position in the Indian motorcycle market. In recent years, TVS Motor has been realizing rising sales thanks to the popularity of the TVS Ntorq 125 model launched in India’s fast-growing 125cc scooter market. With an eye on the future, TVS Motor is also actively investing in electric motorcycle development, M&As and startups. Regarding electrification, the company launched its self-developed electric scooter the iQube in January 2020, re-entering the electric motorcycle market after withdrawing in the early 2010s. This model, which is powered by an electric powertrain from Bosch, is also equipped with TVS Motor’s connected function SmartXonnect. In addition to in-house development, TVS Motor has also invested in a local electric motorcycle startup Ultraviolette Automotive. After a series of investments, TVS Motor increased its share in Ultraviolette Automotive to 29.48% in September 2020 in an effort to strengthen its involvement in management.
In the premium segment, TVS Motor partnered with BMW in 2013 to jointly manufacture and sell medium-sized motorcycles. In addition, as a new initiative, TVS Motor acquired British motorcycle manufacturer Norton Motorcycles for 16 million GBP in April 2020. The purpose of the acquisition is to strengthen the global product and regional portfolio by acquiring the Norton brand.
In addition to domestic sales, TVS Motor is enhancing exports. Looking at export data, although exports account for only 15–20% of production, it reached a record high for three consecutive years from 2017 to 2019. While exports to Africa are increasing, the company has begun expanding business in Latin America as well in recent years. From the latter half of 2019 to 2020, TVS Motor partnered with local distributors one after another in Guatemala, El Salvador, Honduras and Colombia, strengthened its local sales network.