TVS Motor Co. expects the third-quarter momentum to continue as the share of premium motorcycles and scooters rises amid healthy consumer demand.
The maker of the Jupiter scooter saw its consolidated net profit jump 46% year-on-year to a record ₹891 crore during the October to December quarter, driven by strong domestic and international sales. Overall sales surged 25% over a year earlier to 1.48 million two-wheelers, helping revenue grow by 33% year on year to ₹14,745 crore, its highest ever.
Its record profit was driven by a 35% jump in exports to 366,000 units during the quarter. The company will ramp up its focus on the international market with the launch of new models under its UK-based Norton brand.
TVS shares ended with 4.7% gains on Thursday after its earnings were released during market hours, compared with the 0.7% rise in the Nifty Auto index.
“We have grown ahead of the industry, and we are very confident that this momentum will continue both on the industry side, and we will likely to do better than the industry growth in Q4,” Director and chief executive at TVS Motor, said during the earnings call on 28 January.
TVS informed investors that it is close to resolving the issue of rare earth magnet supply, which had limited the supply of its electric vehicles (EVs). “We had some challenges with the magnet’s availability, but now it is better. The availability has become better,” he said.
GST boost
TVS Motor kicked off the earnings season for the auto industry, and analysts will seek signals for the demand ahead after the goods and services tax (GST) cuts implemented in September sent the industry’s sales to a record high. Retail registrations crossed the 20 million mark for the first time in 2025.
According to Society of Indian Automobile Manufacturers (Siam) data, two-wheelers recorded their highest-ever Q3 sales of 5.70 million units, growing 17%, as festive demand and GST cuts boosted demand.
“While the industry has done well, I think one category which has done extremely well is scooter,” he said. “Another important thing we should look at is the premium and super-premium (segment) is growing faster. The executive category of motorcycle is also growing.”
For TVS, scooter sales rose as the demand for its EVs grew 40% to a record of 106,000 units.
The company, however, foresees pressure emerging from rising prices of aluminium, copper and platinum, which will be mitigated with small hikes.
“The strength of the company has been when the volume is growing, we are able to get the scale benefits, and we are also able to drive our cost down program, and we have been very prudent,” he said. “We keep looking at price increases, and if you look at recently, we have taken up about 0.2, 0.3 percentage price increases.”
