Shares of TVS Motor rose 1.5 percent in early trade on November 17 on forging a strategic partnership with a Zurich-based enterprise Emil Frey. At 10:14 am the TVS Motors stock was trading at Rs 1707 on NSE.
Leading two- and three-wheeler maker TVS Motor Company has announced an agreement with Zurich-based Emil Frey, a 100-year-old enterprise that is among the largest automobile importers and retailers in Europe, for import and distribution of the Chennai-headquartered company’s advanced two-wheelers in key European markets.
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As part of this partnership, Emil Frey Group entities will take charge of the distribution of TVS products in selected countries, through its sales, marketing, and service networks, according to a statement.
TVS Motors Stock call: Check brokerage views, target price
Brokerage firm Emkay Global Financial is bullish on TVS Motor and the firm has recommended a ‘buy’ rating on the stock with a target price of Rs 2100 in its research report dated October 31, 2023.
Brokerage house Prabhudas Lilladher has given an ‘accumulate’ rating on TVS Motor Company with a target price of Rs 1650 in its research report dated October 30, 2023. Brokerage firm Motilal Oswal on the other hand is ‘neutral’ on TVS Motors with a target price of Rs 1500 in its research report dated October 31, 2023.
Strategic alliance
"This strategic alliance with Emil Frey is a crucial step in our global expansion strategy. Europe will be a key market for us, and through this partnership, we aim to bring our cutting-edge products closer to European customers,” Sudarshan Venu, Managing Director, TVS Motor Company, said.
Emil Frey, which has been serving many leading automotive brands across the region, will distribute TVS Motor’s scooters such as Jupiter 125, NTorq, motorcycles such as Raider, Ronin, Apache RR 310, and TVS Apache RTR 310, and electric two-wheelers — iQube S, TVS X.
Also Read: Buy TVS Motor; target of Rs 2100: Emkay Global Financial
“I am very proud that TVS Motor Company is relying on our expertise in the European market and using our distribution network to bring their products. Our two companies complement each other perfectly,” said Lorenz Frey-Hilti, Director of Emil Frey Group, a family-owned business house.
The two companies plan to use their collaborative efforts to enter into distribution arrangements for select EU markets, prioritizing countries with strong two-wheeler demand coupled with existing Emil Frey infrastructure and resources to build the distribution network. France will be the first country for the launch, where an entire suite of TVS Motor products including ICE and EV models will be made available starting January 2024, consequent to this agreement.
TVS Motor has been selling its products in more than 80 countries spanning the geographies of Asia, Africa, and Latin America. Exports make up nearly one-fourth of the company’s business.
TVS Motors stock performance
TVS Motor stock has given a return of 34.45 percent over the last six months. The benchmark Nifty50 index has given a return 8.71 percent over the same duration.
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