TVS Motor hopeful of two-wheeler industry getting back to its 2018-2019 peak volume level

Two Wheeler maker TVS Motor Company is hopeful that the industry would get back to its 2018-2019 peak volumes in the current financial year, driven by slew of factors including the GST rate cuts, a top official said.

“The macro economic factors indicated that FY2026 would be a good year, with factors like good monsoon, personal income tax realignment, repo rate cuts. The GST rate cuts will act has a big catalyst. We are very optimistic this will be one of the best festive season we are seen in the long long time,” Aniruddha Haldar, senior vice president — head commuter & EV business and head corporate brand & media, TVS Motor, said in a media interaction in Chennai.

TVS Motor, which has a 20% market share in the overall two-wheeler market in India, is ramping up the production capacity to met the upcoming festive season, he said.

The GST Council has reduced the GST rates on ICE vehicles from 28% to 18%, effective September 22.

“Since the GST cuts have come at the right time going into the festive season, ramping up production capacity is not any issue. Dealers are very buoyant,” Mr. Haldar said.

“As an industry, we haven’t hit back 2018-2019 numbers. So I don’t think capacity is a constraint for anybody today. It is the demand that has to be brought back, because we have seen the two-wheeler acqusition cost going up 40-45% in the last 5-6 years. With GST cut there is a huge reset,” he said.

The company launched TVS NTORQ 150, Hyper Sport Scooter with a special introductory price of ₹ 1,19,000 (Ex-showroom, All India). The price will be adjusted once the company announces new pricing factoring in the GST cuts.

Mr. Haldar said the ICE two wheeler industry has grown at a compounded annual growth rate (CAGR) of 2% in the three years, while scooters have grown at CAGR of 6% and the Sporty scooter segment has grown at CAGR of 11%.