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TVS Motor gets 25k bookings for iQube, extends reach to 88 cities

In the 3-wheeler segment, the company is No 1 in the export market, with a market share of almost close to 40%.

TVS Motor gets 25k bookings for iQube, extends reach to 88 cities
While TVS Motor will continue that, it will invest more and more on the EV side.

TVS Motor Company has said it has got close to 25,000 bookings for its electric two-wheeler iQube which is now available in 88 cities, scaling up quickly from 33 cities previously. The company is trying to move many people from ICE to EV, train them and make them work on the EV side, as it plans to launch many EVs in the next 8-12 quarters. The company, going forward, will make most of its investments on the electric vehicle front (EV).

K N Radhakrishnan, director & CEO of TVS Motor Company told analysts that the company is close to reaching the capacity of 10,000 units of iQube. “ We have to systematically now look at how do we go month after month to 10,000, to 15,000, to 20,000 and then go to 25,000, that is the focus we are in. Now, we have close to the booking of almost 25,000 vehicles, but I don’t want to take any more bookings without delivery. Now from the delivery side, the semiconductor suppliers are fully supporting us,” he said.

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He said that on the ICE front, the company knows what to do, which products, what kind of interventions to make and which markets to go to. While TVS Motor will continue that, it will invest more and more on the EV side.

Giving an overall strategy of the company, he said it will continue to focus on the premium brands like Apache, Ntorq, and the Ronin, coupled with an increased focus on exports. The company wants to take Ronin to the next level. “The premium proportion is around 30% to 32% of our sales, and average exports is to the tune of 1, 00,000 nos per month which are expected to go up further,” Radhakrishnan said.

In the 3-wheeler segment, the company is No 1 in the export market, with a market share of almost close to 40%. There is still an opportunity to grow the company’s 3-wheeler market, according to him.

“We are also now looking at seriously what our platforms can be common, what commonisation we can do because the moment you do commonisation, you can get to gain benefits. And you would have seen a lot of initiatives without reducing the value, without reducing the quality what kind of innovation you can do on the design. So, I think these things will continue to focus on material costs and equally, we always looked at an opportunity to increase prices. So, this strategy of premiumisation focusing on very systematic cost reduction will continue,” he said.

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Answering questions on Ronin- its recently launched bike based on modern-retro, Radhakrishnan said that he is looking at a sales volume of 5,000 this month, but wants to keep the demand ahead of supplies. “These are brands where you have to be a little bit patient. But if you ask me, India is a great country, even if you get a 0.001 fraction of the set of customers, it will be more than 10,000 per month,” he said.

On the semi-conductor issue, he said Apache lost quite a bit in April, May and June, while Raider also lost quite a bit in April, May and June. “But thanks to our team, we were able to develop alternates and now Raider is fully back and Apache is fully back. I don’t think there will be any problem in the festival season. Now, this month and next month, you will see very good numbers,” he said.

On the availability of the products, he said that unlike some of its competitors, the company does not want to dump as it does not want any of its dealers to keep more than 25 days of stock.

On festival demand, Radhakrishnan said one good news is that in the last 60 days, among the number of Covid cases reported, none of them was hospitalised. “So, I’m pretty confident that this year’s season starting end of this month to Diwali will be excellent,” he added.

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