TVS reclaims its third position in Indian market
Snapshot: With strong presence in the scooter segment, TVS is now back to the third spot it enjoyed before Hero and Honda parted ways
Chennai based TVS Motor has left behind Bajaj Auto to claim the third spot in the two-wheeler segment. This is a significant achievement for the two-wheeler manufacturer as it had shifted its focus to the emerging scooter market. TVS is now following Hero MotoCorp and Honda Motorcycle and Scooter India (HMSI) in terms of domestic sales.
According to a data released by Society of Indian Automobile Manufacturers, TVS performed better than Bajaj not only in June, but also in April-June quarter. This can also be blamed on the fact that out of the top four players in the two-wheeler market, Bajaj is the only one that has no presence in the scooter industry. Even though Bajaj ruled the scooter industry in India for a very long time, before it decided to shift its focus on the motorcycle market.
Even though the lead might not last long, but it nevertheless is a feat for an underdog like TVS. In the first quarter of the financial year, TVS sold more than ne lakh scooters which gave it an edge over Bajaj. At the end of the first quarter, the scooter market witnessed a growth of almost 30% to 10.10 lakh units over last year's first quarter. But this development might not be a worrisome situation for Bajaj Auto as it still remains one of the most profitable automobile manufacturer in the world with 40% of its production being exported.
Commenting on this Rajiv Bajaj, MD, Bajaj Auto said, "Bajaj's strategy is to dominate multiple markets in one category, whereas that of our domestic rivals appears to be to dominate one country - India - in multiple categories. As a global company with a huge exports base, we are primarily the No. 1 by far in terms of profitability."
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