TVS Motor: Premium Two-Wheelers, Top Variants, and EV Expansion Fuel Growth

TVS Motor Company reports a significant shift in the Indian two-wheeler market, with consumers increasingly favouring feature-rich, higher-end variants and premium motorcycles, while the company also strategically explores diverse electric motor technologies to bolster its supply chain amidst rising EV adoption.

Photograph: Kind courtesy, TVS Motor/Meta

Indian two-wheeler (2W) buyers are increasingly opting for feature-rich higher-end variants within the same model category as they place greater value on technology, safety, and features, Gaurav Gupta, president – India 2W business, TVS Motor Company, said on Thursday.

“Suppose you have five variants in one category.

“The top variants, which are usually more loaded with features, are seeing an increased trend of consumers preferring those variants than what was earlier. So, the mix of the higher-end variants is increasing,” he said.

Growth in Premium Motorcycle Segment

The company said the demand for premium motorcycles (which have engines of 150cc capacity or higher) is being driven by both existing customers upgrading and first-time buyers entering the segment.

Vimal Sumbly, head business – premium, TVS Motor Company, said easier access to finance and increasing affordability are helping more first-time buyers enter the segment.

Better roads and highways are also encouraging consumers to seek more performance from their motorcycles, Sumbly said.

He added that upgraders continue to be part of the premium motorcycle market, although the company did not provide a specific split between first-time buyers and upgraders, or say which group is growing faster.

Gupta and Sumbly were addressing the media roundtable on the sidelines of TVS Motor’s unveiling of festive-season enhancements across its premium motorcycle portfolio, including the TVS Apache and TVS Ronin, in New Delhi.

The premium and super-premium motorcycle segment is growing at more than 22 per cent, according to TVS. Motorcycles with engine capacities of 150cc and above account for around 27 per cent of the motorcycle industry.

TVS said its premium motorcycle business has grown 29 per cent over the past two to two-and-a-half years, compared with 12 per cent growth for the industry.

TVS pointed to Ronin as an example of the trend. Its average monthly sales have risen to around 9,000-9,500 units from roughly 3,000-3,500 units last year.

The company said Ronin has around 5.2-5.3 per cent market share in the super-premium category.

Exploring Electric Motor Technologies

The company is also exploring different electric-motor technologies as it looks to make its supply chain more secure.

This follows disruptions around semiconductors and magnets, with TVS stating manufacturers need alternative ways to ensure they can continue supplying vehicles.

“Earlier, if you saw, we were all stumped with the issue of semiconductors, magnets.

“So, what are the alternative ways that we all can secure ourselves? And that’s a continuous work that is on as well,” Gupta noted.

TVS said it is evaluating different motor combinations rather than committing to one technology for the long term.

It did not specify which technologies it is assessing or give a timeline for adopting any particular motor.

“It would be very difficult to say that this A motor will be our go-to motor perpetually.

“But in terms of what we have seen, there’s a lot of work that continues for alternative ways to secure ourselves and make sure that we are not short of providing the customers the vehicles that they want to buy,” Gupta said.

EV Penetration and Production Capacity

The comments come as electric two-wheelers (e2Ws) gain ground in India.

TVS said electric vehicle (EV) penetration in the industry has reached around 10 per cent year-to-date.

TVS currently has monthly EV production capacity of around 40,000-45,000 units and is looking to take this beyond 50,000 in the near term.