Orbiter vs iQube: No cannibalisation as both electric scooters target different customers, says TVS

Replying to a question from Moneycontrol during a media briefing following the launch of the Orbiter, TVS Motor Company's India Two-Wheeler Business President Gaurav Gupta said: "When we looked at the customer profile and the requirements, the purpose was that the entire package appeals to different customers in different ways. Range is definitely one of the key parameters that customers look at, but at the same time, the overall styling, stance, technology and the entire package become useful considerations for the customer."

"Will it (Orbiter) cannibalise the lower-end variants of the iQube? Both vehicles serve a different perspective and a different customer set, to a large extent. The Orbiter is for the new-age urbanite customer with limited mobility, which is what is being targeted. The iQube is a high-order, upgraded, family vehicle with a proven base in the country. Both models have their respective target segments, which is what we will be addressing as well," he added.

TVS has invested Rs 125 crore in Orbiter's platform, which will spawn multiple models, including some for e-commerce usage, in the future. The new platform will support both domestic and global markets for the company.

"We expect the Orbiter to add on to the momentum we have with the iQube. At this point in time, the supply constraint impacts the overall volume growth in the segment as well as our portfolio," Gupta said.

The Orbiter is being manufactured on the same line as the iQube at the company's Hosur facility in Tamil Nadu. This has been made possible by the fungible capacity model adopted by TVS for its electric vehicles (EVs).

When asked about the volume target for the Orbiter, Gupta observed that sharing estimates would be difficult due to the current supply constraints.

"At this point in time, it will be very difficult to talk about volume expectations for the Orbiter. However, we are very bullish about the new model. It will add to our EV portfolio. Combined, it will help in building good EV numbers for TVS in the country. Since we have a fungible line, the moment we have a clear supply situation, we will be building more and giving to the customers at the earliest," he said.

The Orbiter is being introduced in the market in a phased manner. It will be initially available in Bengaluru. Over the next few weeks, it will enter other markets.

Like several other two-wheeler manufacturers, TVS is exploring alternate geographies to procure the rare earth magnets for its vehicles. The company is also looking at substituting heavy rare earth magnets with light rare earth magnets.

Gupta noted that although there has been a loss in production due to the rare earth magnet shortage, specifically as the company is building up to the festive season, it will be difficult to quantify the loss.

On the government's Goods and Services Tax (GST) rationalisation proposal, Gupta said: "We have not hit the pre-Covid peaks. Therefore, such initiatives will only aid the consumers in getting on to their vehicles of choice and desire, and hopefully, more of TVS as well."

While the Group of Ministers (GoM) has approved the proposal to rationalise the GST rates, the details of the new GST structure will be known only after the GST Council meeting on September 3 and 4.

At present, the GST structure has four slabs -- 5%, 12%, 18% and 28%. As part of the rationalisation, the 12% and 28% slabs will be removed, and the 5% and 18% slabs will be retained. Also, a new 40% slab will be introduced for sin and luxury goods.

The move will benefit two-wheelers as they are likely to be shifted to the 18% slab from the 28% slab. The ex-showroom price of any vehicle is inclusive of GST. A reduction in the tax will directly bring down the ex-showroom price, and consequently, the on-the-road price.