2025 will go down as a landmark year for TVS for a number of reasons, but it will perhaps be remembered most for being the year when the company became the third largest two-wheeler manufacturer in the world. What was Yamaha’s domain for years behind Honda and Hero is now TVS territory. Official figures are not yet out, but Yamaha guided its investors that the company was expected to post volumes of just under 5 million units being sold in the last calendar year. TVS clocked 5.38 million units in the same period, which is a margin that quite decisively settles the ranking.
The easy first thought is that this loss for Yamaha (and subsequent gain for TVS) would surely have been down to how each manufacturer has performed in the Indian market. After all, Yamaha has been slow and steady at best, while the last few years have seen TVS rocket to dizzying heights. The reality is that there’s much more to it, and international markets have played a big role as well.
TVS’ pursuits in South America and Africa in particular have played a big part in its rise on the international scale. The company has developed a dedicated line of motorcycles under the HLX name just for that market with a focus on practicality and ruggedness. Richard Hammond will testify to how tough these little things can be, having ridden on through some comically punishing terrain in the 2018 Mozambique special of the Grand Tour. This focused approach to the huge African market has done wonders for TVS and has led to it being one of the key players in the region - second only to Bajaj!
That being said, Africa is just one piece of the puzzle. TVS’s successful diversification into spaces like scooters, EVs, three-wheelers and in more recent years, premium bikes is all adding to the kitty. The premium play is a particularly interesting area because that’s where the real money comes from. After all, TVS may have passed Yamaha when it comes to unit sales, but there’s no doubt about which company is registering greater revenue.
Given how differently diversified both companies are in the type of vehicles they sell (think rickshaws, ATVs, boats and more), making an apples to apples comparison of their revenue figures is difficult, but this should give you some idea. Let's make a very rough assumption that the average price for every two-wheeler sold by TVS is about Rs 1 lakh. The same for Yamaha will be multiples higher. Big sales numbers are great, but let's not forget what business is all about at the end - making money.
In that sense, Yamaha will stay the course of being a premium manufacturer producing high quality products that earn it strong revenue over outright sales figures. The company is renewing its India focus in a similar line with the new R2 on the way as well as the Nmax 155 maxi scooter.
TVS is likely to keep pulling away from Yamaha in terms of sales numbers, but the company has a long way to go for its premium play to hit the big leagues. The good news is that it is already on track here as well, with multiple cards in its hands, including Norton, upcoming premium products within the TVS portfolio and an ambition to enter Europe as well as expand in South East Asian markets.
Dinshaw Magol
Ved Janve
Vishal Venugopal
