TVS Motor and its recovery
TVS Motor Company expects that the market devastated by the second wave of COVID19 will recover quickly because it believes it is now better prepared to work with the authorities to resolve supply chain issues and respond appropriately to the pandemic.
The company serves both domestic and export markets. It informs its shareholders that it is fully prepared for growth and that consumers prefer personal travel options during the coronavirus pandemic.
TVS Motor Company stated in its 2021 annual report: “Despite the continued increase in the second wave of active cases, the company still believes that the adverse impact will lessen and recover more quickly”.
This cautiously optimistic outlook is built on the one hand that complements the work of preparing the company’s supply chain. On the other hand, it is believed that the administrative response will be more focused and focused, and Extensive vaccination activities are expected to break the supply chain.
The company notified its shareholders that new long-term social distancing practices might shift consumer preferences toward personal travel, which will create new demands in the two-wheeler industry. As a result, the company sold 2.16 million two-wheelers in the domestic market in fiscal year 21, compared to 2.44 million units in 2019-20.
TVS Motor Company indicated that driven by consumption growth and the stable economic and political situation in all operating areas, the export of two-wheelers may increase during the year. “Stable crude oil prices will have a positive impact on the growth of export markets for oil-dependent economies of Africa and Latin America,” he added.
The company exported 7.64 lakh two-wheelers in the last fiscal year, increasing 12% over 2019-20. However, the company listed the shortage of semiconductors and export containers as its main challenges in the future. After the outbreak of COVID19, high-volume containers in Indian ports continued to be shipped from China to North America and Europe.
Regarding green mobility, the company had informed the shareholders that the transition to alternative energy-based solutions is a need today, and the initiative has received considerable political support from the government.
The company currently has iQUBE electric scooters in its green travel product portfolio. According to the company, “throughout the year, TVS iQUBE’s footprint will expand to another 20 Indian cities. The product portfolio will also expand to updated formats, including 3W versions.”