Industry Profile: Indian automobile industry is one of the largest and most competitive in the world. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India, out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, creates 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in the Two-wheeler market and is the leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is an important market for the company in terms of volumes and as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is significant for further growth. India is also one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent, respectively, in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion from April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars to India.
Company profile: The company operates in the Two-wheeler automobile segment. The company is the third-largest two-wheeler manufacturer in India, exporting to more than 60 countries. The company manufactures various mopeds and scooters, namely XL 100, XL 100 comfort, XL super heavy-duty, Scooty PEP+, Scooty Zest 110, Wego 110, Jupiter, Jupiter ZX, Jupiter ZX (Disc), Jupiter Classic (Disc), Jupiter Classic (Disc), TVS Akula 310, TVS Apache X21 Racer, TVS Entorq, TVS Draken, TVS Victor 2016, TVS Victor GL 110, TVS Victor GX 110, TVS Victor GLX 125, TVS Victor EDGE 125, TVS Victor (2016), TVS Star 100, TVS Star DLX 100, TVS Star Sport 100, TVS Star City 100, TVS Star City 110, TVS Phoenix 125, TVS Max 4R1OO, TVS Apache E-SURGE150, TVS Apache RTR 160, TVS Apache RTR 180 and TVS Apache RTR 200 4V. For selling all their products, TVS Motor functions through a nationwide network of more than 4000 touchpoints across all the states in India.
Shareholding Pattern: BSE Data
Financials and ratios : [table id=87 /]
Future prospectus: TVS is one of the well-known brands in Rural India. When growth occurs in rural areas, TVS is one of the beneficiaries. It is expected that FY 19 will be a good year for agriculture and rural areas. So TVS is one good bet for the Rural India theme.
