TVS Motor Company Limited: history, ownership, mission, how it works & makes money

A Brief History of TVS Motor Company Limited

Founded in 1978, TVS Motor Company Limited is one of India's leading two-wheeler and three-wheeler manufacturers. Initially part of the TVS Group, which dates back to 1911, the company has grown significantly since its inception. In its first year of operation, it sold about 1,200 units of motorcycles.

By 1980, TVS Motor introduced the TVS 50, a moped that became immensely popular, achieving a sales milestone of over 1 million units by the mid-1980s. The company made a notable joint venture with Suzuki in 1982, which allowed it to further enhance its product offering.

In 2001, TVS Motor Company launched the TVS Flame, aiming to capture the youth market. This product was followed by several others, including the TVS Apache series and the TVS Jupiter scooter. The Apache series became one of the top-selling motorcycles in the performance segment. By 2022, the Apache series accounted for approximately 25% of the company's total motorcycle sales.

TVS Motor Company made significant strides in international markets, exporting to over 60 countries by 2023. The company achieved a remarkable export volume of around 1.28 million units in the fiscal year 2021-2022, marking a growth rate of 11% over the previous year.

Financially, TVS Motor posted a revenue of approximately INR 22,797 crores (around USD 2.9 billion) for the fiscal year ending March 2023. The net profit for the same period was reported at INR 1,821 crores (approximately USD 224 million), showcasing a growth of 8% year-on-year. This growth trajectory reflects the company's robust operational strategies and marketing efforts.

In terms of market positioning, TVS Motor Company continues to hold a significant market share in the Indian two-wheeler segment, reaching approximately 13.5% in 2023. The company has also focused on sustainability by launching electric variants, thus keeping pace with global trends towards greener technologies.

As of 2023, TVS Motor has launched its electric scooter, the TVS iQube, which is equipped with a 3.4 kWh lithium-ion battery, offering a range of 75 km on a single charge. The iQube has gained traction in urban markets, with monthly sales reaching approximately 2,000 units within six months of its launch.

Overall, TVS Motor Company has maintained a commendable track record of innovation, market expansion, and financial growth, positioning itself as a formidable player in the global automotive landscape.

A Who Owns TVS Motor Company Limited

TVS Motor Company Limited, a leading player in the Indian two-wheeler and three-wheeler market, is largely owned by the TVS Group, one of India's largest automotive conglomerates. As of the latest available data, the ownership structure is as follows:

The TVS Group, primarily controlled by the founding family, holds a significant majority of the shares, consolidating its position in the company. Among individual shareholders, notable ownership includes:

TVS Motor Company has demonstrated robust financial performance, with a market capitalization of approximately ₹33,000 crore as of October 2023. The company recorded a revenue of ₹18,000 crore for the fiscal year ending March 2023, showing a growth of 10% year-on-year.

The stock performance has also been notable, with shares trading at approximately ₹1,100 as of late October 2023. Over the past year, the stock has appreciated by around 25%, reflecting strong investor confidence in the company's growth trajectory and market strategies.

TVS Motor Company operates in a competitive landscape, holding a market share of approximately 15% in the two-wheeler segment within India. Key competitors include Bajaj Auto, Hero MotoCorp, and Honda Motorcycle & Scooter India.

The company continues to invest in electric mobility and expanding its product portfolio, aiming to capture a larger share of the growing EV market in India, which is projected to reach ₹50,000 crore by 2025.

TVS Motor Company Limited Mission Statement

TVS Motor Company Limited, one of the largest two-wheeler manufacturers in India, focuses on delivering superior quality products and services. They aim to create value for customers, employees, and stakeholders through innovation and sustainability.

Mission Goals

TVS Motor’s mission statement encompasses critical goals that drive its operations:

• To provide high-quality two-wheelers and three-wheelers that ensure customer satisfaction.
• To focus on sustainable practices for environmental preservation.
• To empower its employees through continuous learning and development.
• To build strong partnerships with suppliers and stakeholders for mutual growth.

Financial Performance

In the fiscal year 2022-2023, TVS Motor Company reported significant growth in revenue and profit, affirming its commitment to mission goals:

Market Presence

TVS Motor has established a robust market presence not only in India but also internationally. The company has a diverse portfolio that includes motorcycles, scooters, and three-wheelers. As of FY 2022-2023, the company reported a market share of approximately 15.5% in the Indian two-wheeler segment.

Innovation and Sustainability

Aligned with its mission, TVS is heavily investing in R&D and sustainable technologies:

• Investment in electric vehicle (EV) technology with a goal to launch multiple EV models by 2025.
• Commitment to reducing carbon emissions by 30% by 2030.
• Introduction of green manufacturing processes across facilities to minimize waste.

Employee Engagement

TVS Motor recognizes the importance of its workforce in achieving mission objectives:

• Employee training programs initiated in 2023 aimed at enhancing skills and productivity.
• In FY 2022-2023, total employee count reached 35,000, a 8% increase from the previous year.
• Annual employee satisfaction survey indicated a satisfaction rate of 82%.

Customer Satisfaction

TVS Motor continuously aims to enhance customer experiences through quality service and innovative products:

• Customer satisfaction index reported at 87% in 2023.
• Development of a robust after-sales service network with over 3,400 touchpoints across India.
• Launch of a mobile app providing seamless customer interaction and feedback collection.

Vendor Collaboration

The company strives to establish symbiotic relationships with its suppliers to foster competitive advantage:

• Over 2,000 suppliers partnered in various capacities.
• Implementation of long-term contracts ensuring stability and reliability in supply chain.
• Investment of INR 200 Crores in supplier development programs in 2023.

How TVS Motor Company Limited Works

TVS Motor Company Limited, one of the largest two-wheeler manufacturers in India, operates through a diversified business model that focuses on manufacturing motorcycles, scooters, and three-wheelers. The company is known for its commitment to quality, innovation, and sustainability.

In the fiscal year 2022-23, TVS Motor reported a total revenue of ₹22,836 crores, representing a growth of 20% year-over-year. The company has a significant export market, with around 20% of its sales coming from international markets.

TVS Motor's manufacturing capabilities include several plants located across India. The company has invested heavily in technology and automation, leading to enhanced production efficiency. The total production capacity across these facilities stands at approximately 4 million vehicles annually.

The product line of TVS Motor includes various categories such as motorcycles, scooters, and electric vehicles. The following table highlights the key models in their product portfolio and their features:

In 2021-22, TVS Motor achieved a market share of 14.6% in the domestic two-wheeler segment. This growth is attributed to the company's strong distribution network, which includes over 6,000 touchpoints across India.

The company's focus on research and development is evident with an investment of ~5% of its revenue towards the development of new products and technological advancements. The launch of electric vehicles aligns with the government's push towards greener mobility solutions, allowing TVS to capture a growing market segment.

TVS Motor Company also places significant emphasis on customer engagement. The company has implemented various digital initiatives, allowing it to connect with customers through social media and mobile applications, enhancing the overall customer experience.

In terms of financial performance, TVS reported an operating profit margin of 10.5% in FY 2022-23. The company's net profit for the same period was around ₹1,750 crores, reflecting a growth rate of 18% compared to the previous year.

TVS Motor has a strong commitment to sustainability, with initiatives to reduce emissions and increase fuel efficiency in their vehicles. The company aims to achieve a carbon-neutral footprint by 2035 as part of its long-term vision.

How TVS Motor Company Limited Makes Money

TVS Motor Company Limited, a significant player in the two-wheeler and three-wheeler segments in India, generates revenue through various means, primarily by manufacturing and selling motorcycles, scooters, and auto-rickshaws. The company has solidified its position by offering a diverse product catalog catering to different market segments.

As of FY 2022-23, TVS reported a total income of ₹18,765 crores, a notable increase compared to ₹15,920 crores in FY 2021-22. The company’s revenue was primarily driven by sales volume, which reached **3.38 million units** in FY 2022-23, signifying a **12%** growth year-over-year.

Product Segmentation

TVS's revenue streams can be segmented into motorcycles, scooters, and three-wheelers. The following table outlines the revenue distribution among these segments:

The motorcycle segment remains the largest contributor, making up over **54%** of the total revenue. Notably, the TVS Apache series has seen robust demand, helping bolster this segment.

Export Revenue

TVS also benefits significantly from its export division. In FY 2022-23, the company exported over **600,000 units**, resulting in an export revenue of approximately **₹2,300 crores**, accounting for **12.3%** of the total revenue. The company’s presence in markets across Africa, Latin America, and Southeast Asia has propelled this growth.

Aftermarket Sales and Services

Aftermarket sales contribute to the company’s revenue through genuine spare parts and servicing. This segment brought in approximately **₹1,500 crores** in FY 2022-23, showcasing a growing demand for after-sales services as vehicle ownership continues to rise in India.

Financial Performance Indicators

TVS's performance can also be assessed through key financial indicators. Below is a summary of these metrics for FY 2022-23:

The increase in net profit to **₹1,425 crores**, and the improvement in EBITDA margin to **12.3%**, highlight effective cost management and operational efficiency, supporting the overall profitability of TVS Motor Company.

Market Trends and Innovations

The automotive sector is currently focused on electric mobility, and TVS is responding to this trend with its electric scooter, the TVS iQube. The company aims to capture **15%** of the electric two-wheeler market in India by 2025, with projected sales growth correlating with the increasing push for sustainable transport solutions.

In conclusion, the diversified revenue streams, prudent management, and forward-looking initiatives place TVS Motor Company in a robust position to continue generating substantial income while adapting to market changes.