TVS Motor shares swing to record high on its foray into Vietnam

Shares of two-wheeler and three-wheeler manufacturer TVS Motor surged as much as 2.6% to hit a 52-week high of ₹1,784.00 apiece on the BSE, a day after the company announced foraying into the Vietnamese automobile industry. With this, the company has surpassed its previous high of ₹1,745, which the company touched on November 17 this year.

The scrip opened higher on Thursday at ₹1,764.85, up 1.5% as against the previous closing price of ₹1,738.25. At 1:51 pm, the share price of the company was trading 1.97% higher at ₹1,772.45. The company's market capitalisation stood at ₹84,206.44 crore with 23,491 shares exchanging hands on the BSE, as against the two-week average of 0.17 lakh shares. The company hit a 52-week low of ₹968 on January 20 this year. In the year-to-date period, the counter has surged 65.13%.

The company enters Vietnam through its collaboration with Minh Long Motors, which will be its distribution partner. According to the company, TVS Motor will leverage Minh Long Motors' extensive distribution network and deep market insights to expand in Vietnam. The company’s products including TVS Dazz, TVS NTORQ, TVS Callisto 110 cc and 125 CC, and TVS Rockz, are currently available in more than 80 countries across Asia, Africa and Latin America.

Notably, the company's exports in Asia, Africa and Latin America accounted for nearly 25% of the company's business in H1 of FY23. In H1 of FY2024, however, the exports by the company tanked by 20.4% year-on-year to 4,36,033 units on account of dwindling geo-political situation and foreign exchange issues, according to the Society of Indian Automobile Manufacturers.

“Vietnam is an economy on the rise and mobility and access are key drivers of any economy. By launching our products in Vietnam, TVS Motor gets a chance to play a small part in charting the course of the Vietnamese economy. We will be unwavering in our commitment to ensure an exceptional ownership experience for our customers,” says J Thangarajan, President Director – PT TVS Motor Company.

According to the company, TVS NTORQ 125, TVS Callisto, TVS Dazz, and TVS Rockz will be available in all showrooms.

The development comes a week after the two-wheeler manufacturer, through its partnership with Emil Frey entered the European market.

Analysts at HDFC Securities earlier said that they expect the company’s outperformance to continue on the back of healthy demand for its products like Raider, i-Qube, Jupiter125, etc. “In exports, having established its presence in Africa, its outperformance is likely to be driven by its focus on penetrating Latin America in the coming years. Even in 2W EVs, TVS is putting the right building blocks in place in order to emerge as a leading player. Its investments in e-bikes in Europe, Norton and the extension of tie-up with BMW Motorrad are expected to deliver strong returns over a 2-3 year horizon,” the analysts say.

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