The automaker’s Director and CEO KN Radhakrishnan said the scooter segment's share in the domestic two-wheeler market could increase to around 40% from the current 32%.
22 Aug 2024 | 3910 Views | By Kiran Murali
TVS Motor Company anticipates the scooter segment to expand significantly in the two-wheeler industry and account for around 40% of the overall two-wheeler volumes going forward. The company is betting on its new scooter platform to outpace the industry's growth.
"Currently, the scooter share [in the industry] is around ...
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TVS Motor Company anticipates the scooter segment to expand significantly in the two-wheeler industry and account for around 40% of the overall two-wheeler volumes going forward. The company is betting on its new scooter platform to outpace the industry's growth.
"Currently, the scooter share [in the industry] is around 32% of the two-wheelers. I am a firm believer that the scooter category will substantially expand in the market and it may go to 40% and above," TVS Motor Company's Director and CEO KN Radhakrishnan told reporters.
The domestic two-wheeler industry sold 18 million two-wheelers during the financial year 2024, of which 5.84 million units were scooters. Scooters accounted for 32% of the overall sales and the share was almost the same in the year-ago period as well. Honda Motorcycle and Scooter India is the leader in the domestic scooter market, followed by TVS Motor.
"Scooter has got all the benefits. Many consumers want to use it for many reasons. There is flexibility, it can be used by any members in the family. So with its application, benefits, usage, I expects scooters to do much better," he said.
Radhakrishnan noted that TVS Motor’s scooter sales have outpaced the industry with a CAGR of 12%, while the industry grew by 8%. The company attributed this growth to its product portfolio, which has scooters across all major segments.
TVS Motor's current portfolio includes four scooters – Zest 110, Jupiter 110, NTorq 125 and Jupiter 125. The Karnataka-based automaker, which remains the third-largest two-wheeler player in the country with a market share of around 17%, today launched a new version of the Jupiter 110cc scooter developed on its new platform.
TVS Motor invested Rs 150 crore to develop the next-generation platform, which is in line with the company's Reimagine strategy. The company boasts that the new platform has unparalleled design, performance, comfort and convenience. He also noted that the scooter segment is witnessing a strong demand trend in both the urban and rural markets.
Meanwhile, the sales of electric two-wheelers continue to gain momentum, though the penetration is still in single digits. Around 944,126 electric two-wheelers were sold in 2023-24.
TVS Motor, which is the second largest electric two-wheeler maker, has earlier said electric vehicles will be the top priority for the company and plans to expand its EV portfolio further this year with one more affordable two-wheeler.
It currently sells electric two-wheelers under the iQube range and has five variants. iQube is among the top-selling electric scooters in the country. The automaker recently added three new variants to the iQube range, which now starts at Rs 84,999.
ENDS
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