TVS Motor Success Story
The scenario of public transport in India was not this better always. The middle class had no other option than to wait endlessly for boarding crowded buses. This is the time when mopeds were introduced to the Indian market, and mopeds soon won the hearts of the Indian middle class. Talking about mopeds, one name that we can never fail to mention is TVS. TVS launched India's first two-seater 50cc moped in 1980, which soon became a part of many Indian households. TVS is still upholding its legacy and is still considered a trusted name in the two-wheeler segment. Here is more on the journey of TVS.
TVS Motor- Company Highlights
- Startup Name-TVS Motor Company Limited
- Parent-Sundaram - Clayton Limited
- Headquarters-Chennai, Tamil Nadu, India
- Industry-Automotive
- Founders-T. V. Sundaram Iyengar
- Founded-1978
- Products-Two-wheeler, Three-wheeler, Automobile parts
- Current CEO-K. N. Radhakrishnan
- Website-www.tvsmotor.com
TVS Motor- About
Indian multinational automobile manufacturer, TVS Motor Company (TVS) is located in Chennai, India. TVS is named after its founder Thirukkurungudi Vengaram Sundaram Iyengar. Motorcycles, scooters, mopeds, and 3-wheelers, as well as associated replacement parts and accessories, are the primary products of the firm. With exports to over 60 countries, TVS Motor Company is also India's fourth-biggest two-wheeler manufacturer after Hero Moto Corp, Honda two-wheelers, and Bajaj Motors. In terms of export, TVS Motor is India's second-largest exporter of two-wheelers.
Automotive vehicles and Parts, Automotive Accessories, and TVS Financial Services & Others are the major operating divisions of TVS motors. The Automotive vehicles and components segment is where the majority of the company's income is generated. TVS Motor Company is the largest firm of TVS Group both in terms of size and turnover.
TVS Motor - Industry
In India, the automotive sector is one of the most rapidly developing sectors. India isn't known for being a simple market, but perseverance always pays off. India produced 26.36 million cars in Fiscal Year 2020.
Passenger cars and 2-wheelers accounted for 80.8 percent and 12.9 percent of the Indian automobile market share, respectively, with over 20.1 million vehicles sold in FY20. Small and midsized automobiles are the most popular passenger vehicles.
In all, India exported 4.77 million cars in FY20, representing a 6.94 percent CAGR from FY16 to FY20. Two-wheelers accounted for 73.9 percent of all vehicles shipped, with passenger vehicles accounting for 14.2percent, 3-wheelers accounting for 10.5%, and commercial vehicles accounting for 1.3 percent.
TVS Motor - Founders and Team
T. V. Sundaram Iyengar established T. V. Sundram Iyengar & Sons (TVS), a transportation firm with a huge fleet of trucks and buses, in 1911.
T.V. Sundaram Iyengar
Thirukkurungudi Vengaram Sundram Iyengar was an Indian businessman and pioneer in the car industry. T. V. Sundram Iyengar & Sons, a bus firm he started in 1911, eventually moved into automotive manufacture and became the parent company of the TVS Group, India's largest commercial empire.
TVS Motor - Startup Story
T.V. Sundaram Iyengar is the founder of TVS Group. He began his career as a lawyer and later went on to work in the Railways and in a bank. Sundaram Iyengar however was more inclined towards entrepreneurship, and in 1911 he left his job to form TV Sundaram Iyengar and Sons, a Bus Service provider in Madurai. Till TV Sundaram Iyengar's death in 1955, the company operated buses and lorries by the name of Southern Roadways Limited. TVS Motor, the flagship company of TVS Group was launched by TV Sundaram Iyengar's Son T.S. Doraiswamy in 1978.
In 1980, India's first two-seater moped, the TVS 50, rolled out of the factory in Hosur, Tamil Nadu. Sundaram Clayton Ltd and Suzuki Motor Corporation formed a joint venture in 1987 as a consequence of a technological partnership with the Japanese car giant Suzuki Ltd. Motorcycles were first produced commercially in 1989.
Sundaram Clayton was incorporated in 1962 as a joint venture between Clayton Dewandre Holdings and T.V. Sundaram Iyengar & Sons Ltd. It produced brakes, exhausts, compressors, and other automobile components. Sundaram Clayton is also the holding company of TVS Motor.
TVS Group has since then ventured into many businesses and forged tied with many organizations. Axel India Limited, a joint venture between Sundaram Finance and Dana Holding Corporation, USA produces Axel Housings. Brakes India Limited was formed in 1962 as a joint venture between TV Sundram Iyengar and Sons Ltd., and Lucas Industries Ltd.UK. for manufacturing braking equipment. TVS is also into the manufacturing of Motor parts and accessories, Electronic Ignition Systems, bus bodies, rubber products, and even textile.
TVS Motor- Mission and Vision
TVS Motor's vision statement says, "We are committed to being a highly profitable, socially responsible, and leading manufacturer of high value for money, environmentally friendly, lifetime personal transportation products under the TVS brand, for customers predominantly in Asian markets and to provide fulfillment and prosperity for employees, dealers, and suppliers."
TVS Motor - Logo, Slogan, and Tagline
TVS is the abbreviation for Thirukkurungudi Vengaram Sundaram(TVS Group Founder). The company's professionalism and power are symbolized by the lettering's blue hue in the company logo. A red-hued jumping horse serves as the TVS logo. The horse's silhouette is heading right, into the future, and represents the brand's growth and velocity.
TVS' tagline says, "Inspiration in Motion."
TVS Motor - Competitive Force Model
The following is the analysis of the TVS competitive force model:
Supplier Power - Although TVS has long been a popular provider for low-income clients in the two-wheeler industry, we will examine the suppliers' influence in this case. The TVS supplier market is very fragmented, and the possibility of backward integration is also strong, limiting the suppliers' strength. TVS works with a number of local vendors to procure spares and components for its cars. The arrival of numerous new small-scale manufacturers has also aided big vehicle manufacturers such as TVS in obtaining highly competitive prices for their spares and parts. This plainly demonstrates the supplier's poor power.
Buyer Power: Buyers' power is greater in the two-wheeler sector due to the wide range of products and brands offered. Today's buyers are choosy and particular about what they want for their money. They are seeking a brand that offers better prices and technology, which has eroded consumer loyalty for any company today and is TVS's greatest danger.
The threat of Replacements: When compared to other factors, the threat of substitutes is rather modest, since the market appears to be growing and maturing every day. However, when we looked farther down the road, we could see danger from rapidly rising gasoline prices, which may force buyers to convert to more fuel-efficient diesel vehicles. Growing environmental concerns have also resulted in the introduction of bicycles and battery-powered two-wheelers, which might pose a challenge to TVS in the future.
TVS Motor - Employees
- T. V. Sundaram Iyengar - Founder
- Manu Saxena - VP Business Planning
- K Gopaladesikan - CFO
- Rajesh Narasimhan - CEO
- Lakshmi Venu - Joint Managing Director & Non-executive director
- TG Dhandapani - Chief Information Officer
TVS Motor- Challenges Faced
As of July 2020, Due to a shortage of trained labor, TVS Motor Company – one of the top manufacturers of motorcycles and scooters – was experiencing delays in the delivery of replacement parts and overall manufacturing operations.
Following the lifting of the lockdown in May, most manufacturers are attempting to ramp up output in order to meet demand. However, factors such as a spike in Covid-19 cases and a lack of personnel have hampered automakers' capacity to boost car manufacturing.
According to the Society of Automobile Manufacturers, due to the negative impact of the Covid-19-induced economic downturn, car sales across all categories might drop by more than 25% in FY 21. This followed a decrease of 18 percent in domestic sales in FY 20
TVS Motor - Subsidiaries
TVS Motor Subsidiaries include -
- Norton Motorcycle Company
- TVS Housing Limited
- TVS Motor(Singapore) Pte. Ltd.
- TVS Motor Services Limited
- Intellicar Telematics Private Limited
- PT. TVS Motor Company Indonesia
- Sundaram Auto Components Ltd.
- TVS Motor Co. (Europe) B.V.
TVS Motor - Growth
On Monday, TVS Motor Company reported that it sold 278,855 automobiles in July 2021, an increase of 10% over the same month the previous year. In the month of July 2020, the indigenous automaker sold 252,744 vehicles.
Not only has the brand seen an increase in domestic sales, but it has also seen an increase in international sales. In July 2021, it claimed to have shipped 103,133 automobiles, increasing 65 percent from the same month the previous year. In July 2020, it exported 62,389 vehicles. With 87,559 units delivered in July 2021, TVS saw a 62 percent increase in exports in the two-wheeler sector alone. It exported 54,141 two-wheelers to foreign markets in July of the previous year.
According to the automaker, demand in the export market is still strong, and container availability is increasing compared to the previous few months when shipping was disrupted. In the next months, TVS anticipates a further increase in container availability.
TVS Motor- Competitors
Bajaj Auto, Hero MotoCorp, Yamaha Motor, Suzuki Motor Corporation, Ather Energy, Honda, Royal Enfield, Kymco, Piaggio & C. SpA, and Piaggio & C. SpA are among the top ten competitors of TVS Motor Company.
TVS Motor - Awards and Achievements
Most recent awards and achievements are:-
- Bike Awards - 2019 - Two-wheeler manufacturer of the year
- Indian Motorcycle Of The Year - 2017
- TVS Motor has been awarded Highest in Customer Satisfaction by J.D. Power Asia Pacific Awards for 2018.
- TVS Scooty Zest 110 is awarded the Most Appealing Executive Scooter by J.D.Power Asia Pacific Awards for 2016.
- TVS Motor Company was named the Two Wheeler Manufacturer of the Year by NDTV Car and Bike Awards 2015.
- TVS is India's Most Trusted Brand in the Two Wheeler Category
- TVS Apache RTR180 is the Most Appealing Premium Motorcycle as awarded by J.D.Power Asia Pacific Awards for 2018.
- TVS StaR City + is awarded the highest-ranked Economy Motorcycle by J.D.Power Asia Pacific Awards for 2018.
TVS Motor - Future Plans
While TVS Motor Company has already begun manufacturing and selling their new electric scooter, the iQube, in a few locations, the next 24 months are expected to witness exponential development, with a whole new variety of electric vehicles due to reach the market under the new vertical. The vehicles will most likely be two and three-wheelers with power outputs ranging from 5 to 25 kW. However, for the time being, the brand's electric car division will work alongside its ICE vehicle division.
Speaking on his future plans, Sudarshan Venu who leads the new strategy says “We want to scale up the TVS electric experience pan India, and it is a space where we would like to play a leading role. We've quietly worked on EVs for the last one decade. It is a huge focus area for us as we advance. We are embracing this future; we are investing in it and are excited.”
For the time being, though, it's probable that the company is searching for partnerships to help them expand its charging network and satisfy consumer demands. In addition, the company has built a new EV plant that will be scalable to meet demand and is investigating the possibility of managing crucial backend production of batteries and other vital elements in-house
TVS Motor - FAQs
Which country is TVS Motor based in?
TVS Motor is an Indian automotive company.
Who founded TVS Motor?
T. V. Sundaram Iyengar established TVS, a transportation firm with a huge fleet of trucks and buses, in 1911. Later
When was TVS Motor founded?
TVS Motor was started in 1978 by T. V. Sundaram Iyengar's son T.S. Doraiswamy
Which companies do TVS Motor compete with?
Bajaj Auto, Hero MotoCorp, Yamaha Motor, Suzuki Motor Corporation, Ather Energy, Honda, Royal Enfield, Kymco, Piaggio & C. SpA, and Piaggio & C. SpA are among the top ten rivals of TVS Motor.
