TVS Motor Company, which had earlier indicated plans to launch products across various price points and powertrains, has earmarked Rs 2,200 crore for this financial year.
Around 50 percent of the outlay will be spent on capital expenditure and the remaining sum on product development, new launches and marketing expenses, a senior company official said.
“For outlook on the capex, I think capex plan for this year will be about Rs 1,000-1,100 crore and the investment also will be of the same order, slightly may be higher than capex,” said K N Radhakrishnan, Director and Chief Executive Officer, TVS Motor, during a post Q1 FY2025 earnings call.
He said the majority of the investments during the first quarter of this financial year were made in TVS Credit Services at about Rs 300 crore while Rs 100 crore was spent on Norton and Rs 30 crore on its EV cycle business Swiss Mobility. “Some small amount (was spent) for TVS Jupiter, but a significant proportion has gone to TVS Credit Services,” Radhakrishnan said.
Norton plans
Norton Motorcycles, the British company taken over by TVS Motor earlier, has lined up six new products over the next three years.
The Venu Srinivasan-led company will invest in the engineering, research and development of Norton motorcycles in the current financial year.
“A significant proportion is going into investment, design and development of Norton products. Additionally, there are investments towards e-mobility," Radhakrishnan said. The company has so far invested Rs 1,200 crore in its British subsidiary.
TVS Motor also hinted that the Norton-branded motorcycles will also be launched in the Indian market. “India is a huge market, and as you know, India has got super premium customers. I'm very sure that we will be launching some of these products in India because they are applicable to the Indian market. And we are also looking at this as a huge opportunity in India, Radhakrishnan added.
New launches
While the first product under the British two-wheeler brand will be launched by next year, the Chennai-based automaker is working on the rollout of a petrol-powered two-wheeler, an e-scooter and a three-wheeler.
It is also eyeing a double-digit growth in volumes this fiscal, on the back of a revival in the rural markets.
“I'm of the view that the self-employed category in rural is slowly now looking at new products. When I say new products, they were extending the existing product by service, and are now looking at some replacement from new products,” Radhakrishnan said, adding, “Definitely, rural India has to fire for the overall economy to do well. Early signals are seen now and you will see better and better rural demand."
Expanding overseas
The homegrown two- and three-wheeler manufacturer, which has a presence in several countries across Asia, Africa, and Latin America, is also looking at augmenting its overseas business. It has four manufacturing units, three in India and one in Indonesia, and multiple distribution centres in the overseas market.
“We will definitely start exporting our EV products to the ASEAN markets. We are already, doing some advanced product testing over there, Radhakrishnan said.
The company plans to leverage its manufacturing in Indonesia to export its electric vehicles to other ASEAN markets. “We have our plant in Indonesia and have a local sourcing base there. We don’t see exports to ASEAN as a challenge because the moment you have (a facility) in Indonesia, then there is an ASEAN FTA (Free Trade Agreement). That will help us,” Radhakrishnan said.
TVS Motor Company on August 6 reported a 23 percent rise in consolidated net profit at Rs 577 crore for the quarter ended June 30, against Rs 468 crore recorded in the year-ago period. TVS Motor's revenue from operations rose 16 percent to Rs 8,376 crore in Q1FY25 as compared to Rs 7,218 crore in Q1FY24.
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