The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: My first question was around your EV sales network and production capacity ramp-up plan. So our sales network for the last 2 quarters haven't
been able to expand beyond 33 cities. I understand it's the reflection of supply constraints which we have. So what is the visibility now you have?
And what is it that you are targeting now on the sales network expansion?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
MAY 05, 2022 / 12:00PM, TVSM.NS - Full Year 2022 TVS Motor Company Ltd Earnings Call
And also on the production plan expansion, you had talked about that the first quarter of FY '23, we should reach 10,000 unit production, I think
that would also be critical for network expansion plans. So how are we planning on in EV?
Question: Kumar Rakesh - BNP Paribas, Research Division - Analyst
: Great. My second question was on the acquisition side. We have made a few EV bike acquisitions, especially in Europe. And earlier, we had made
an acquisition of Norton brand. So how are we planning about in terms of product and also the planned strategy around those? And more
importantly, in the context, are these EV bikes would be purely for the European market? Or we are looking at it in conjunction with the Indian EV
market and our strategy here domestic?
Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst
: Congratulations on a good set of numbers. Just wanted to go back, apology for this on the point raised by Pramod as well as Gunjan. Now we
understand that when you make an investment, you obviously have a 3- to 5-year view. Markets may not be as patient. So what would help us and
maybe hopefully we'll hear more on this, is that maybe on Norton and maybe on the other businesses, if you could come out and share some of
your 3- to 5-year plan in terms of maybe capacity which geographies, that would give us some comfort that, okay, investments are high, but that
is fine. Like financial services has done and how Indonesia has turned around, these businesses will give us good returns in the future. That was
just some point that I wanted to make. And hopefully, like you mentioned, if Norton does start production this year, hopefully, we'll hear some of
your plans during the year.
Question: Amyn Pirani - JPMorgan Chase & Co, Research Division - Analyst
: That's good to hear, sir. Secondly, sir, on the EV side, as you move from around 2,000 per month to, say, 10,000 to 15,000 a month on the two-wheeler
side, do you think that the current format of distribution, which is how you sell it in the current existing TVS showroom would work? Or do you
think you'll have to create a slightly different format, maybe a shop-in-shop or a separate distribution because the category, while it's a scooter,
it's a -- it still has different nuances. I would love to hear your thoughts on that.
Question: Pramod Amthe - Incred Research Services Private Limited - Analyst
: This is with regards again the EV opportunity in India, considering your moped presence and also the number of acquisitions you're doing
internationally, how do you see a low-speed two-wheeler opportunity in India? What's the market size as per you? And what it can grow? And do
Question: Pramod Amthe - Incred Research Services Private Limited - Analyst
: Sir, any estimates based on your studies, what is the market size there because as we have not registered?
|
