TVS eyes 15% market share in 2016-17 fiscal

The Dollar Business Bureau

TVS Motor has set a target of achieving 15% market share in India’s two-wheeler segment by the 2016-17 financial year.

The company plans to launch TVS Akula, a 300cc bike jointly developed with German automobile major BMW, by the end of the current fiscal.

“The unit sales of two-wheelers will grow by 15% as compared to last year and we expect the market share for two wheelers to be close to 18% in the next two years,” said K N Radhakrishnan, president and CEO, TVS Motor.

TVS Motor expects its 2015-16 capex to be around Rs.400 crore. “Profitability will grow and we expect the EBITDA (earnings before interest, taxes, depreciation and amortization) to grow to double digits in the next 2-3 years,” Radhakrishnan said.

The Chennai-based automobile manufacturer feels urban market will continue to drive the two-wheeler industry during 2016-17. It will be further funneled by normal monsoon, improvement in demands in the rural market and disbursement of the 7th pay commission.

“We expect the two-wheeler industry to register 8-10% growth for 2016-17,” said Venu Srinivasan, chairman, TVS Motor. “The company would continue to invest in products and be ready for the emission regulation changes scheduled for April 2017 for all its products.”

For its scooters, TVS Motor said it would focus on its Jupiter brand. The company currently has a 14% market share in the domestic scooter market. “Focused brand actions and regular product interventions in terms of refreshes and limited editions for all brands are planned. Company is planning to leverage urban sales in scooters and penetrate further through secondary channel,” Srinivasan said.

TVS sold 25.7 lakh two-wheelers last year as against 24.1 lakh units in 2014-15, thereby registering a growth of 7%.