TVS Motor Stock Analysis: Is TVS a Strong Player in the EV Scooter Market?
5 min read
The electric vehicle (EV) revolution is gaining momentum, with the automotive industry undergoing a significant transformation. One of the prominent players in India’s EV scooter market is TVS Motor Company, known for its wide range of two-wheelers. This article provides an in-depth analysis of TVS Motor’s stock performance, its current standing in the EV scooter market, and the company’s future prospects.
Company Overview: TVS Motor’s Journey So Far
Founded in 1978, TVS Motor Company has grown into one of India’s leading two-wheeler manufacturers. Over the years, it has established a strong brand presence with products spanning motorcycles, scooters, and electric vehicles.
Key Milestones in TVS Motor’s Growth:
- 1978: TVS enters the two-wheeler market with the launch of its first motorcycle.
- 2001: The company becomes the third-largest motorcycle manufacturer in India.
- 2010: TVS introduces the first eco-friendly scooter, marking the company’s interest in sustainable mobility.
- 2021: TVS launches its electric scooter, the iQube, signaling a strategic entry into the EV market.
TVS has strategically positioned itself as a diverse player in the automotive industry, catering to both internal combustion engine (ICE) and electric vehicle (EV) segments.
EV Scooter Market: A Growing Opportunity
India’s electric two-wheeler market is experiencing rapid growth, driven by government incentives, environmental concerns, and increasing fuel prices. The EV scooter market is especially gaining traction among urban populations looking for affordable and sustainable commuting solutions.
Key Drivers of Growth in the EV Scooter Market:
- Government Incentives: India’s FAME II scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) offers subsidies to EV manufacturers, promoting the adoption of electric scooters.
- Rising Fuel Prices: The high cost of petrol and diesel has made electric scooters a more economical alternative for daily commuting.
- Environmental Concerns: Consumers are becoming more environmentally conscious, pushing the demand for cleaner, greener alternatives to traditional fuel-based vehicles.
The EV scooter market in India is expected to see a compound annual growth rate (CAGR) of over 35% from 2021 to 2030, making it a highly lucrative space for companies like TVS Motor.
TVS Motor’s EV Strategy: iQube and Beyond
TVS made its bold entry into the EV space with the iQube Electric Scooter, launched in 2020. Since then, the company has aggressively expanded its EV portfolio to capture market share in this growing sector.
TVS iQube: Performance and Features
- Battery Capacity: The iQube comes with a 4.4 kWh lithium-ion battery.
- Range: The scooter offers a range of 75-80 km on a single charge.
- Top Speed: It can reach a top speed of 78 km/h.
- Charging Time: Fully charges in 5 hours using a standard charger.
Expansion Plans and Future Models
- TVS has plans to increase production of the iQube, aiming to launch 50,000 units annually by the end of 2022.
- The company also announced plans to invest in upgrading the battery infrastructure and network to offer faster charging solutions for its customers.
TVS Electric Vision: The company’s future vision includes more electric models across various segments, from budget-friendly scooters to high-performance electric motorcycles.
TVS Motor’s Revenue and Financial Performance
TVS Motor’s financial performance reflects its consistent growth across both its traditional two-wheeler and EV segments. Let’s examine the historical financial performance and forecasted outlook.
Key Financials: Historical Data (2021-2023)
| Financial Metric | 2021 | 2022 | 2023 (Q1) |
|---|---|---|---|
| Revenue | ₹22,000 Cr | ₹24,500 Cr | ₹6,200 Cr |
| Net Profit | ₹1,200 Cr | ₹1,350 Cr | ₹400 Cr |
| EBITDA Margin | 9.3% | 10.2% | 10.8% |
| EV Revenue Contribution | ₹150 Cr | ₹500 Cr | ₹1,100 Cr |
From the data above, it is clear that TVS Motor has seen a consistent increase in its revenues, with the EV segment’s contribution steadily rising, signaling growing confidence in the electric vehicle market.
Growth in EV Segment:
TVS’s EV revenue, primarily driven by the iQube, increased by over 200% in 2023 compared to 2022, showing significant traction in the EV market.
TVS Motor Stock Analysis: Price, Technicals, and Future Outlook
Historical Stock Performance
TVS Motor’s stock has displayed solid growth over the years, driven by its consistent performance in both the ICE and EV markets.
- Current Market Capitalization: ₹1.121 Trillion (as of February 2025)
- Stock Price : 2,363.75 per share
- 5-Year CAGR: Approximately 18% CAGR, reflecting strong investor confidence in the company’s future prospects.
Key Technical Indicators
- Relative Strength Index (RSI): As of now, the RSI stands at 62, indicating that TVS shares are neither overbought nor oversold.
- Moving Average: The stock is trading above both the 50-day and 200-day moving averages, suggesting a bullish trend.
- Support Level: ₹900 per share.
- Resistance Level: ₹1,200 per share.
Share Price Target: 2025, 2027, 2030
Projected Stock Performance: 2025, 2027 & 2030
| Year | Share Price Target (₹) |
|---|---|
| 2025 | 2740 |
| 2027 | 3352 |
| 2030 | 4274 |
Rationale Behind the Forecast
- Strong EV Growth: TVS is expected to continue expanding its EV portfolio, which will drive its stock price growth.
- Sustainability Initiatives: With growing consumer interest in sustainable mobility, TVS’s focus on EVs positions the company to benefit from this market shift.
- Innovation in Battery Tech: Investments in improving battery technology and charging infrastructure will further solidify TVS’s position in the EV market.
Conclusion: Is TVS a Strong Player in the EV Scooter Market?
Yes, TVS Motor is emerging as a strong player in the electric scooter market. The company’s strategy of integrating electric vehicles into its broader portfolio, coupled with continuous innovation and strong market demand for EVs, positions TVS well for long-term growth.
With an increasing focus on expanding its electric scooter range and building a robust sales network, TVS is poised to become one of the top competitors in India’s growing EV space. Investors looking for a combination of stability and future growth potential should consider TVS Motor as a key player in the Indian EV market.
Disclaimer:
The information shared in this article is based on our analysis TVS Motor Stock Analysis: Is TVS a Strong Player in the EV Scooter Market. However, stock market predictions are inherently volatile and can change due to various factors. The share price targets provided are forecasts and may not be accurate. We strongly advise seeking expert financial advice before making any investment decisions.
Please note that stock performance can be influenced by market conditions, regulatory changes, and other external elements. We encourage you to verify this information with additional sources before proceeding with any investment.
