TVS Motor, the second largest two-wheeler maker in India, has announced that it will invest Rs 1,000 crore in capex for both electric vehicle (EV) and internal combustion engine (ICE) products in the financial year 2023-24. The company also plans to spend another Rs 1,000 crore on subsidies and acquisitions, including its premium motorcycle brand Norton.
The company reported a 68% increase in net profit for the third quarter of 2023-24 at Rs 593 crore, up from Rs 353 crore in the same period last year. The operating EBITDA grew by 40% at Rs 924 crore, up from Rs 659 crore last Q3 and the operating EBITDA margin was the highest at 11.2%, compared to 10.1% in Q3FY23 .
Out of the total subsidiary spend of Rs 1,000 crore, TVS spent Rs 80 crore on Norton and another Rs 120 crore on other subsidiaries in Q3 alone. TVS has announced a lineup of new products including electric two and three wheelers both under the TVS brand as well as under Norton. “We’re coming up with a clear product plan for Norton including an India focus,” said KN Radhakrishnan, director & CEO, TVS Motor .
The company has a “very good product pipeline” lined up for EVs and claims to be margin positive on them. The company sold 48,000 units of EVs in Q3, up from 29,000 units in the same quarter last year. The company also said that its electric three-wheeler will be launched in the upcoming quarter .
The company’s total two-wheeler sales stood at 10.63 lakh units in Q3, up from 8.36 lakh units in Q3FY23. The total three-wheeler sales were 38,000 units, down from 43,000 units last year. The two-wheeler exports were 2.16 lakh units, slightly higher than 2.07 lakh units in Q3FY23 .
The company faced some currency depreciation challenges in African markets but saw good opportunities in the Middle East and Latin America. The exports are looking up with Sri Lanka, Myanmar and Philippines opening up and the company’s base in Indonesia helping it grow in Asean .