TVS Motor sees strong demand from West Asia, recovery in other key global markets: Registers growth as high as 43% in exports

Despite the pandemic showing no signs of ending, TVS Motor Company has reported that it has been witnessing an increase in export demands for West Asia with customers leaning towards premium products more and more.

Riding high on a good set of export numbers in February, TVS Motor Company has said it has been witnessing strong demand from West Asia and recovery in traditional markets in South Asia, West Africa and Latin America.

The Chennai-based company’s two-wheeler exports registered a year-on-year (y-o-y) growth of 35% in February 2021 and the demand in exports market continues to be robust, it said.

“TVS Motor’s total exports grew by 43% and 23% in January and February 2021, respectively; therefore, we are confident of ending the upcoming financial quarter on a positive note. Exports are showcasing good growth due to availability of foreign currency and stability in exchange rates of local currency, however, scarcity in container availability is affecting overall export volumes,” a TVS Motor spokesperson told FE.

TVS Motor’s domestic two-wheeler sales grew by 15% in February 2021 against February 2020.

“We can see the shift to premiumisation in all markets and foresee our premium products such as Apache, NTORQ 125, Jupiter ZX and Grande series continuing to do well both in domestic and international markets. We are now witnessing strong demand from the Middle East (West Asia) and recovery from traditional markets in South Asia, West Africa and Latin America. Irrespective of markets, some challenges like safe, personal transportation are universal, which will drive the business for months, possibly years to come,” the spokesperson said.

TVS Motor, the flagship of the $ 8.5-billion TVS Group, exports to more than 60 countries. The company had recently appointed Timothy (Tim) Prentice as V-P, design.

Like TVS Motor, other two-wheeler makers also did well on the exports front even as they reported a varied trend in their wholesales in February 2021.

Honda Motorcycle’s two-wheelers’ exports grew 16% y-o-y in February with its BS-VI model exports gaining momentum in new overseas markets as well. Hero MotoCorp posted a 16.5% growth while Bajaj Auto recorded a 12 % growth; Royal Enfield registered a 94% growth in exports.

The wholesale despatches of Hero MotoCorp registered a flat growth while Honda Motorcycle & Scooter India closed February with a strong 31% jump in domestic sales. Bajaj Auto had reported just 1% growth while Royal Enfield posted a growth of 6% y-o-y.

Two-wheeler retail sales recorded a de-growth of 16% in February. Though the retail sales have taken a beating, industry watchers said, exports have been growing well for the two-wheeler makers in the wake of global markets getting opened up after the pandemic-triggered shutdowns.

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