According to TVS Motor Company, it is beneficial to have initial challenges in the electrical vehicle (EV) market because they occasionally give the business a fantastic opportunity to be competitive
Having a startup problem in the electrical vehicle (EV) market is beneficial, according to TVS Motor Company, and occasionally it gives the business a fantastic chance to be competitive. At a recent analysts’ call, K N Radhakrishnan, director & CEO of TVS Motor Company, responded to questions by saying that there are more than 450 startups in the EV industry, some of which may succeed. However, the company cannot roll out these companies.
So, in my opinion, it is a tremendous opportunity from time to time, and a 100-year-old company should welcome this kind of startup challenge. Its importance is enormous. Considering that you occasionally need to be shaken up. Competition is a good thing, the man said.
For the iQube, which is now available in around 250 towns and is preparing for exports, TVS Motor has more than 35,000 reservations. “Many new goods are in the works. In my opinion, the developed markets are just a matter of time, and I think there is a fantastic potential to do so. Pricing in developed markets may be very different from that in developing markets, he explained.
With the EV industry, the company has the chance to truly go global because it operates in both developed and developing regions. “In the two-wheeler industry, we only operate in emerging markets; we export to 70 nations, the bulk of which are in Africa, Latin America, and ASEAN nations. Europe, the US, and Canada are still not where we are. Naturally, we have more than 1,50,000 consumers worldwide thanks to our partnership with BMW,” he stated.
With the help of the cooperation with BMW, the business plans to release a number of goods, some of which TVS Motor will also design. The business is researching the established market, the consumer, their purchasing patterns, and how they use EV products. According to Radhakrishnan, TVS will be present in numerous markets over the course of the next five years, and the brand will be well-known there.
The development of electric and internal combustion engine (ICE) vehicles will cost TVS Motor between Rs 900 and Rs 1,000 crore in investment for FY24, according to past statements. In an effort to promote electric vehicles, the nation’s second-largest two-wheeler manufacturer plans to release a variety of EV goods, including e-three wheelers, and will be targeting foreign markets.
In comparison to the previous fiscal year, the company’s revenue from operations increased by 27% in FY23 to reach Rs 26,378 crore, or Rs 26,378 billion. In a similar vein, operating EBITDA increased for the year, rising from 9.4% to 10.1%. The PBT before exceptional items was higher at Rs 2,003 crore as compared to Rs 1,243 crore while the PAT for the year was at Rs 1,491 crore as compared to Rs 894 crore, registering a increase of 67%.
