TVS MOTOR managing director Sudarshan Venu is ramping up the company’s premium portfolio and focusing on electric vehicles (EVs) as India’s third-largest two-wheeler maker looks to increase domestic market share and make inroads into Europe. These are ambitious moves for a company that has so far relied on exports to developing countries. “We have started taking small steps into Europe. A lot of growth has come from emerging markets so far — South Asia, parts of Africa and Latin America. Europe is a big premium two-wheeler market,” Venu tells Fortune India. TVS had snapped up Britain’s luxury motorbike maker Norton Motorcycles for ₹153 crore in 2020. It has spent around ₹1,200 crore to revive the brand to its former glory. “You will start seeing more action in Europe with launch of Norton in second half of 2025,” says Venu. TVS Motor sold over four million scooters, motorcycles and mopeds for the first time in FY24, surpassing its pre-pandemic sales at a time when rivals Bajaj Auto and Hero MotoCorp are yet to recover to their previous highs.
Premiumisation is paying off on the domestic front too. TVS has a higher share in premium motorbikes in the 150cc-200cc segment with its Apache series; the industry’s overall product mix is skewed towards entry-level motorcycles. In fast-growing 110cc to 125cc commuter segment, TVS doubled sales from 2,39,388 to 4,78,443 units in FY24, thanks to Raider. About half (49%) of TVS Motor’s sales came from motorcycles, 38% from scooters and the rest from mopeds.
“Customers are upgrading. The industry is back on growth path. There is huge under-penetration of personal mobility,” says Venu. “With increasing affluence in India and other emerging markets, there has been an increase in premiumisation. People want more features, more connectivity, more power, bluetooth helmets, etc.”
TVS Motor’s early investments in EVs have helped it emerge as India’s second-largest electric scooter manufacturer. It sold 1.83 lakh iQube e-scooters in FY24, up 123% from 82,108 in the previous fiscal. “Electrification is at the core of our investment and pivot towards the future. You have seen iQube and TVS X. We will launch one more scooter soon. We will also launch an electric three-wheeler and an electric three-wheeler cargo vehicle this year,” says Venu.
The Hosur-based company is also working on electric motorcycles. No legacy automaker has ventured here so far. “We will make electric motorcycles on our own. There will be an electric Norton as well. We will have the complete product range from e-bikes and electric scooters to motorcycles and three-wheelers,” he says. TVS owns the biggest stake in electric motorcycle start-up Ultraviolette Automotive.
When asked why legacy players are yet to enter electric motorcycles, Venu says in urban areas, e-scooters have been an obvious choice. “That is what consumers want,” he says, adding it’s still early days for EVs with just 5% volumes. “Going forward, e-motorcycles will come. It’s a question of time,” he says.
On the slowdown in EV sales in August, Venu says the structural direction is clear. “Around 30% of our portfolio will be EVs soon. The direction is clear, our commitment is clear. Volumes will keep pace,” he says. Venu says falling battery prices and PLI scheme have made EVs more profitable.
In EVs, Indian two-wheeler companies will create globally competitive products, he says. “It is interesting that global capability has been built by Indian two-wheeler companies. A lot of premium products in Europe come out of partnerships or co-development with Indian companies, whether it is KTM (Bajaj Auto) or BMW (TVS Motor),” says Venu. TVS partnered with BMW Motorrad about a decade ago under which it makes five 310cc motorcycles, including electric BMW CE 02.
TVS Motor’s exports, however, contracted last fiscal. India’s second-largest two-wheeler exporter shipped 8,87,774 units in FY24, down 3% from 9,15,018 units in FY23. At its peak, the contribution of exports to TVS’ revenue was almost 35%, says Venu. “In FY24, it was lower due to slowdown in Africa. That has bottomed out now. Inflation coming under control and interest rates coming down will help demand in Africa, which is an important overseas market for us,” he says. “With increasing GDP, you will start to see a pick-up in personal mobility in Africa. Bangladesh and Sri Lanka have historically been good markets for us. Of course, there is political turmoil there, but as stability returns, those will offer opportunity over the medium term,” he says. Venu believes delivery is a big opportunity for electric three-wheelers. The automaker will launch its maiden e-three-wheeler this year.
Aside from EVs, TVS is also investing in building compressed natural gas (CNG)-powered two-wheelers. “CNG is definitely an interesting option. We already have a CNG three-wheeler. We will explore more,” says Venu. Rival Bajaj Auto launched the world’s first CNG motorcycle in July.
TVS Motor acquired Switzerland’s largest e-bike maker Swiss E-Mobility Group but the slowdown in Europe affected sales and the company had to incur losses. “Europe is a huge market. There have been a couple of slow years for the industry. But growth will come back in Europe in 2025-26,” he says.
The TVS family scion is betting big on the company’s NBFC (non-banking financial services) arm TVS Credit as well. “Total equity investment would be close to ₹6,000 crore with AUM of ₹32,000 crore and 30 million customers. It’s a big vertical for us. We will look at other categories within financial services like gold loans, and potentially home loans. That’s why we have taken a health insurance company.” In May, TVS Holdings acquired an 80.7% stake in Home Credit India Finance for ₹554 crore.
Venu, who plays golf to unwind, says strategy is about having a vision but also being practical about what can be delivered. “It’s very important to have a compelling vision of the future,” he says, adding that being an owner and professional manager requires discipline and focus, something he enjoys doing.
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