TVS 50 (Mopeds!) with 100% Market Share, 0% Growth Rate: TVS Motor’s Mojo?
“Focus area has to be the entry-level segment. The bottom of the pyramid is where the money is.”1
– Venu Srinivasan, Chairman and Managing Director, TVS Motor Company
In 2010, in an interview, Venu Srinivasan (Srinivasan), the Chairman and Managing Director of one of the largest two-wheeler manufacturer in India, TVS Motor Company Limited (TVS), said that TVS would focus on the rural market and the entry level segment in the years to come. However, by November 2012, TVS slipped from its long time number three position in the Indian two-wheeler (2W) industry to number four position. Despite the company’s poor performance over the years, its mopeds remained the star performers.
TVS launched India’s first 2-seater 50cc moped (motor+pedal) in 1980 and it is credited with making the category popular, though Kinetic Engineering Limited launched India’s first moped with a single seat. TVS 50cc moped, popularly called as the TVS 50, sold more units than the other two product lines (motorcycles and scooters/scooterettes) of the company. Without much modification since the time it was launched in 1980, the trend-setter-moped became a popular mode of transportation in Indian towns, particularly in the southern states of the country. By 2000, 62% of its sales were from South India, 27% from Western India and the remaining from rest of India. After 35 years of untiring journey, the moped product line contributed 39.8% to TVS’ total two-wheeler sales by volume in financial year 2012-2013. Moreover, within the Indian two-wheeler industry, motorcycles’ sales constitute 76% (119.5 lakh units), ungeared scooters sales constitute 19% (30.1 lakh units) and the remaining 5% (7.9 lakh units) sales were contributed by mopeds. And the entire moped share is contributed by TVS’ mopeds.2.........................................
Exhibits
Exhibit I: Trend in Sales Volumes of Indian Two-Wheeler Industry
Exhibit II: Domestic Two-wheeler Manufacturers’ Declining Market Share (%)
Exhibit III: TVS Group Companies
Exhibit IV: TVS’ Brands
Exhibit V(a): The TVS 50 Moped
Exhibit V(b): The TVS 50 Moped – Inspiration for Innovation
Exhibit VI: TVS Motor – Vehicle Sales
Exhibit VII: TVS 50 – Design
Exhibit VIII: European Two-Wheeler Market
Annuxures
Annexure I: TVS Motor Company Limited – Financial Highlights
Annexure II: TVS Motor Company Limited Achievements
Annexure III: TVS Motor Company Limited – Awards
- 1 Shereen Bhan, “TVS Motor to focus on rural market, entry-level segment”, http://www.livemint.com/Companies/OYqYHeZLXndfh9eXI8bw6L/TVS-Motor-to-focus-on-rural-market-entrylevel-segment.html, January 11th 2010
- 2 “TVS Motor Company Limited – Twenty First Annual Report 2012-2013”, http://www.tvsmotor.in/pdf/21st-Annual-Report-2012-2013.pdf