The chairman of TVS Motor Company, Professor Sir Ralph Dieter Speth, addressed the shareholders at the 31st Annual General Meeting on July 24, 2023. He gave an overview of the company’s performance in the fiscal year 2023 (FY23) and its outlook for FY24.
Professor Speth emphasised TVS Motor Company’s dedication to transparent business practices and sustainable growth, which is rooted in the founders’ vision for the business. He also mentioned India’s impressive growth throughout FY23 when talking about the economic climate in 2023. This growth was attributed to government policies, solid fundamentals, and the tenacity of the Indian people.
TVS Motors Challenges and Success
The pandemic presented difficulties, but TVS Motor Company still had a stellar FY23. With sales of 3.5 million two-wheelers and 0.18 million three-wheelers, the company set records. The sales resulted in a turnover of ₹26,479 Crores (US$ 3.29 Billion), a significant increase of 27.2% over the previous year. In comparison to the prior year, the company’s Profit Before Tax (PBT) increased by 61.1%, reaching ₹2,003 Crores (US$ 249.15 Million).
The domestic market saw significant growth for TVS Motor Company, with notable improvements in a number of segments. Due to the resumption of economic activity and the reopening of businesses and schools, the ICE scooter segment grew by 22.1%. The ICE motorcycle market saw a growth rate of 13.9%, and both segments continued to hold a commanding 51% share of the two-wheeler market.
Vision Forward
TVS Motor Company also made significant advancements in the electric vehicle (EV) market. The TVS iQube, renowned for its energy efficiency, cutting-edge technology, and appealing design, saw robust demand, resulting in sales of EV two-wheelers of 97,000 units.
These increased numbers in sales contributed to a 46% growth in standalone net profit, amounting to ₹468 Crore.
Professor Speth also underlined the business’ commitment to sustainability and social responsibility, emphasising on its programmes for preserving biodiversity, adopting renewable energy sources, conserving water, and reducing carbon emissions.
Professor Speth expressed cautious optimism about FY24. The TVS Motor Company wants to take advantage of increased urban demand and a gradual export market recovery as India’s GDP is expected to grow by about 5.5%. To continue to dominate the smart EV mobility market, the company plans to continue investing in EV technology and strategic alliances.