Parikshit Luthra:
TVS Motor Company is today one of India's largest two-wheeler manufacturers. In fact, it is the third-largest two-wheeler manufacturer in the country and fourth-largest globally by volume. The company has a market cap of 16 billion US dollars, present in over 80 countries. They are the leading EV player by market share. Joining us right now to speak about the company's global strategy at their headquarters here in Singapore is the company's Managing Director, Sudarshan Venu. Sudarshan Venu, thank you so much for joining us here at your Singapore office. Things have been good as far as EV sales and the overall push towards premiumization and export growth are concerned. You've now spent 12 years with the company, three years as Managing Director. What would be your biggest achievements or milestones as you would like to list them out for us?
Sudarshan Venu:
I think it's a collective achievement, Parikshit. It's really the vision and values that my father has started TVS Motors with, with a huge focus on quality, customer satisfaction in product and technology. And that is the basis on which we have grown. And that is the basis on which we have to continue to grow and do exciting things in the future. I think there's a very passionate team who are excited about the future. And as we have said in our LRP — to transform the quality of life of our customers. So that is really the focus.
Parikshit Luthra:
Currently, you're working out of Singapore. Give us a sense of how your Singapore headquarters, your office, is important for your global strategy because clearly you're aiming or targeting domestic growth itself. You're targeting a global footprint. You want to make TVS a truly global company. So how does being here fit in with your global strategy?
Sudarshan Venu:
So I think we are targeting both. India is the fastest-growing large economy and the world's largest two-wheeler market. So definitely we are focused on growing, on launching exciting new products, on launching new channels and new formats to communicate with customers in India, and that is a big focus. Indian customers, the rising middle class with greater consumption, are looking for more premium products which we are launching and I'll share more about that later. And we're looking at new ways and new formats of communicating with them and relating to them in a differentiated way. At the same time, we are one of the leading players globally and top four or five as you mentioned. And therefore, we are seeking to have a greater global footprint. In the last seven or ten years, our volumes outside India have grown by nearly ten times in two-wheelers. And today, almost 30% of our volumes of two-wheelers are outside India. So definitely we are seeking to strengthen this footprint, to get closer to our customers overseas, to have a deeper connect with them, to launch products and services which are more catered to them rather than just exports. And I think some of those products have come, some of those initiatives have started, and more will happen. So I think the base in Singapore does help us to run these operations with greater customer focus, with global talent, and also to build global capabilities in areas like strategy or M&A as we seek to grow further in these markets.
Parikshit Luthra:
I would like to speak about your international strategy and I think Norton fits into that very well. You're coming up with the Norton India launch very soon. Could you give us a sense of when that is expected and what are we really expecting in terms of those big bikes which are coming into India?
Sudarshan Venu:
Norton will launch towards the end of this year and we will start phasing in the products towards the end of this year and early next year. I think I have mentioned six products before, four of which will be available for the summer of 2026 in the four European markets of the UK plus France, Germany, Italy, and Spain — as also, of course, in India. So this is where I think we are heading towards — by starting off with the launch of the four-cylinder superbike at EICMA and then we will also share the remaining three products at EICMA or soon after, which will be available in the market early 2026. They're all in advanced stages of development. I think we have a good leadership team now at Norton with the two executive directors, Nevijo Mance and Richard Arnold. Supporting them are very good designers, engineers, and a lot of homegrown talent from TVS in India, which I think brings a great mix in terms of the Britishness and the uniqueness of Norton while leveraging the capabilities of TVS and also offering opportunities for our talent to grow.
Parikshit Luthra:
Right, so there's a lot of competition in the premium space in India as well — in the 350 to 500cc space — and 650 is a space which Royal Enfield has been leading. Could you give us a sense of where your bikes would be playing, in which segment, and how many bikes will the Indian consumer be able to reach out to in India?
Sudarshan Venu:
I think we will play — start, as I said, with the 1200cc superbike. We will have other smaller offerings as well. But we will draw a line on how we ensure we keep Norton premium, keep it in the luxury space, and offer bikes that are uniquely differentiated and uniquely Norton in terms of the three values which we have articulated — which is design, dynamism, and detail.
Parikshit Luthra:
You're right. And what will be the retail strategy for it in India?
Sudarshan Venu:
We definitely have a differentiated retail strategy in India covering Norton and possibly some of the premium TVS vehicles as well. As I said, this will help us connect with the growing middle class of India and upper middle class and people with more affluence — and with Norton, even some of the top-end segments who buy sports cars and other vehicles who also buy these very high-end bikes. We will connect with different retail formats that are uniquely catered to them and offer them that superior and differentiated experience.
Parikshit Luthra:
So there'll be more experience centers, more showrooms — specific showrooms. How many are you targeting for?
Sudarshan Venu:
Absolutely. We'll share more soon, but I think definitely we will cover in the first phase the big cities and then after that move on to other cities. And we definitely intend to offer the entire Norton range.
Parikshit Luthra:
Initially, the sales would be only in India and the UK, or are you targeting...?
Sudarshan Venu:
As I said, it is India, UK, and the four large European markets initially.
Parikshit Luthra:
Okay, and are these going to be manufactured here in India or are they going to be exported in the first phase?
Sudarshan Venu:
There is manufacturing in the UK and there is going to be manufacturing in India as well. Some of the models will be made with greater value-added content in India and some with greater value-added content locally. And I think this new India-UK FTA also helps both ways in terms of ensuring that components and kits and things from our side can go to the UK in sub-assemblies, but also ensuring that the fully built vehicles can come into India.
Parikshit Luthra:
Right, so you can take benefit of the lower tariff regime.
Sudarshan Venu:
Definitely. And I really applaud that it has happened. It's good for many sectors of the economy. It's good for us as well.
Parikshit Luthra:
Could you give us a ballpark figure on how much you are putting behind launching the Norton in India and in global markets — both in terms of R&D, manufacturing, and the marketing plan?
Sudarshan Venu:
I think a really luxury differentiated brand has to be built the right way. So that is really a focus for us. We will start with a capacity of close to 10,000 vehicles and with the four models going up to six models. So I think really the focus is on ensuring that the brand philosophy is delivered, the vehicles live up to it, the retail and communication clearly show the brand experience and delight customers and resonate with them. So that is really the focus in the first phase, by each year.
Parikshit Luthra:
Right, so Norton, of course, is a big focus area for you and it's been an interesting ride so far since you acquired the company. As we stay with your international focus — your partnership with BMW, it's been holding strong. Both companies have also developed an EV together. Where is the partnership currently and how do you plan to expand on it?
Sudarshan Venu:
I think we did first the single cylinder — the 310 family. Then came the EV, and now is the two-cylinder family, which BMW has shown their version at last year's EICMA. And you will see Norton and TVS versions using a similar platform in the coming months. So that is where I think the relationship is headed.
Parikshit Luthra:
Right. Speaking about electric vehicles — 25% market share in the month of May, that's what we pick up. You were the leading player and you have been the leading player for several months now. The competition is stiff, but you're steadily growing the market. What's going to be the strategy from here on in terms of building your EV portfolio?
Sudarshan Venu:
We are committed to building all segments in EV that we believe make sense. And so we have the TVS iQube, which of course has done well. We have now started retail of the TVS X, which is sort of a flagship scooter — which shows the capabilities of what we can do in terms of technology and materials and really creating a fantastic riding experience. And we're resonating with the young customers in terms of connectivity, in terms of use of advanced materials, in terms of design. We're also launching another electric scooter this year. And we've done the One Make Electric Racing Championship and also electric three-wheelers and electric bicycles as well.
Parikshit Luthra:
Okay, so if I were to ask you — how many electric products altogether in FY26?
Sudarshan Venu:
I think in FY26 we will look at a lot of new launches. One is — of course X has already started retail. There is an improved iQube and one more new scooter.
Parikshit Luthra:
One more new scooter coming up. How does the market look to you currently and are you looking at increasing capacity? What is the monthly run rate that you're looking at?
Sudarshan Venu:
I think we are increasing capacity and the volumes have grown. At the same time now there is this whole supply chain challenge in terms of China banning the export of high rare earth (HRE) magnets, which are actually very important for our motors and other parts of the EVs. So this EV supply chain disruption is certainly going to pose a short to medium-term challenge. And I think as India plans its EV strategy and EV plan, the adoption will have to be phased in or phased up along with developing an Atmanirbhar supply chain in India — where India, as the world's leading two-wheeler market which has produced three of the top five companies by volume globally, has its own supply chain, its own R&D, its own capability, and EV is really built on that basis.
Parikshit Luthra:
How badly is the restriction by China on the supply of rare earth magnets impacting TVS Motor Company right now?
Sudarshan Venu:
In the short term, it will impact the entire industry a bit. As we go forward, we have to develop new solutions, develop new components, new suppliers, and really work our way through this.
Parikshit Luthra:
So is it already — for the industry, is it already showing on the monthly numbers?
Sudarshan Venu:
It will start showing soon. Maybe in June — if not, definitely in July.
Parikshit Luthra:
Some bodies have really sounded the alarm bells, saying that this could literally bring EV production to a grinding halt. Would you go to the extent of saying that? How bad is it for the industry?
Sudarshan Venu:
It is concerning, yes. I mean a halt is pretty bad, right? It doesn't get that much worse than that. Yes, it is a significant challenge.
Parikshit Luthra:
So you're expecting from June onwards it will start showing in production figures and there will be very significant production cuts?
Sudarshan Venu:
Yes. But on an industry level — I know it's very difficult to give a sense of what's happening at TVS. At an industry level, what could be the production cut or decline that you expect?
Sudarshan Venu:
We will all do our best to mitigate it, of course. As some of the industry bodies like SIAM have said, and some other industry leaders have also said — it will be significant. And it will change from month to month. So we will have to work our way through this over a period.
Parikshit Luthra:
So the availability is a question, and the pricing will also go up, I'm guessing. Very significant concerns there. The other issue on the PM eDrive scheme — we have been seeing the FAME scheme continuing since 2015 — two versions of that. You've got the PM eDrive scheme. Now the scheme comes to an end next year. Are you ready for a zero-subsidy scenario?
Sudarshan Venu:
I think the government has done a lot to encourage EVs, and of course, over a period of time these subsidies have to be phased down in every industry. So as it ends, then the industry will have to continue to develop new ways of reducing costs, new ways of being competitive. I think the supply chain issue is important so that as we build out of this, you build a supply chain that's resilient.
Parikshit Luthra:
That's what the government, of course, needs to do.
Sudarshan Venu:
It's not just the government — the industry, the suppliers, the OEMs — everybody has to work together. The government has done a lot already. This new challenge is there. We'll all have to face it and I'm sure we'll overcome it as well.
Parikshit Luthra:
Right. Have you been able to identify new suppliers around the world to de-risk your strategy?
Sudarshan Venu:
Yes, that's going on as we speak, and we'll share more as the situation progresses.
Parikshit Luthra:
On the electric three-wheeler plan — recently we saw TVS Motor Company launching products in the cargo space, in the passenger space. How is that going and how would you like to increase your market share, your monthly production when it comes to electric three-wheelers?
Sudarshan Venu:
The electric three-wheeler of ours has been very well received. We are also launching a CNG three-wheeler for cargo and passenger applications during the course of this year. As you know, we've done better in three-wheelers outside India. Hopefully, with these launches, we'll continue to grow abroad and in India as well.
Parikshit Luthra:
The partnership with Hyundai — we saw some future concepts developed by Hyundai and TVS, and we believe that TVS was mulling manufacturing and retailing those in India and global markets. How far have things progressed?
Sudarshan Venu:
Things are progressing. I think the concept is a really cool concept, and we will share more with you at the right time.
Parikshit Luthra:
But are we expecting a launch this year maybe? Okay, let me speak to you more about the domestic market right now. We've seen your market share grow to 18 to 19% from 16 to 17%. What would be your ambition for FY26?
Sudarshan Venu:
See, our ambition is always to launch exciting products to delight customers and then market share is a resultant. So I would like to say that we're launching exciting products, we are focusing on enhancing the customer experience to continue our focus on the core TVS values of quality, customer satisfaction, innovation, and tech. And you'll see some exciting new products from us this year, including a premium scooter.
Parikshit Luthra:
Could you give us a sense of how many more products — because as you have in the India market, you need to keep exciting the customer?
Sudarshan Venu:
So, I have said three two-wheelers. Yeah. And then we have the CNG three-wheeler as well.
Parikshit Luthra:
CNG three-wheeler as well. The bigger one?
Sudarshan Venu:
The bigger one — the current one is, of course, there in CNG, yeah, but this is the bigger one particularly for cargo and passengers.
Parikshit Luthra:
How would you describe the sentiment for two-wheelers right now in India, both in urban and rural markets?
Sudarshan Venu:
I think over the next 10 years, if you see the opportunity for penetration of two-wheelers in India, it is massive. India’s the fastest-growing large economy. In some of the states in northern and eastern India, penetration is much lower than the other states of south and west, so that penetration will go up. A couple of quarters here and there — there may be some ups and downs, which is a function of various global and other factors. But I think the medium to long-term trajectory is intact and that’s something we’re investing behind.
Parikshit Luthra:
How would you expect the company to grow in the next five years, Sudarshan? Of course, this is a time when there are a lot of geopolitical risks, but as a personal ambition that you would have — where do you see the company in five to ten years?
Sudarshan Venu:
I think the aspiration is to reimagine in 2030 and transform the quality of life of our customers by providing vehicles and mobility solutions that are exciting, sustainable, and safe. So that is really the goal. And I think in many of the Indian — in India, of course — and many global markets, you are witnessing a transformation. Personal mobility will start in Africa. In Brazil, we have rolled out a very unique way of connecting with our customers along with the financial platform Mottu. We're looking at new ways of servicing and delighting customers in Africa. And as I mentioned to you earlier — with an international headquarters and a global team — we are able to look at various new strategies and new ways of connecting with customers and of relating to these markets through products and also services more broadly in the mobility space. And I think that some of that you are already seeing and some of it you will see in the next five to ten years. We’ll also, of course, have more exciting products and ways of connecting with customers — both digitally and physically. I think racing is an area which is exciting and can be spread — more people can have fun on a racetrack in a confined and safer space. And then of course, you also have Norton which is launching — which caters to the premium and luxury space — and the electric bicycles. So there's a lot of excitement.
Parikshit Luthra:
Welcome back, you're watching CNBC TV18 and we are in exclusive conversation with Sudarshan Venu, Managing Director of TVS Motor Company at the company's headquarters here in Singapore. On the electric bicycle front — there was a period during COVID where you were literally on an acquisition spree with electric bicycles and electric bicycle companies. Are you planning to now expand that plan, get them to India? What would be the strategy going forward?
Sudarshan Venu:
Rather than spree, I think we bought a couple, because the rest of them were reported as an acquisition — but they were really shops or some technology that we had bought. Now we have integrated everything. I think there is a bit of a supply glut in Europe on electric bicycles in the past couple of years, which has impacted the industry and us as well. We have developed new products now — which means that the greater portion of our sales from our new products, which we are developing, is increasing. We are also developing specifically for India with a dynamic young team, a new e-bike — which we will launch in India — because the European cost point is, of course, quite different. So together with this, we have consolidated our presence in Europe, we will expand further with the new products, we will launch in India. And in India, adoption will start as well, more for leisure. And in Europe, I think — both for mobility and for a bit of leisure — as the industry comes out of it, we will aim to break even and start getting returns.
Parikshit Luthra:
Okay, e-bike launch in India when?
Sudarshan Venu: This year itself.
Parikshit Luthra: Speak to you about the domestic sentiment once again — between rural and urban — how does the sentiment look and what would be the ratio of growth that one can expect?
Sudarshan Venu:
I think the sentiment is similar because today you see cities are also expanding. Of course, with a good monsoon, rural sentiment can be better than many going forward. So, I think also you see now many cities are expanding quite a bit, and this sort of mega city is also creating new demand on the periphery. What you may have called a rural area is actually part of a sort of mega city. So this whole urbanization is blurring the lines, and I also think with digital communication, the customer patterns and behavior are beginning to be more similar to each other.
Parikshit Luthra:
Would you say that having a diversified strategy, especially for your exports, also is going to be important? What kind of export growth are you targeting? And how many more countries would you like to reach out to?
Sudarshan Venu:
We are in many countries already. And of course, as there are opportunities in industrialized countries, we will look at entering new markets as well — and also new segments within those markets or new ways of doing things in some of those markets. In terms of Africa — I think Africa has bottomed out and is turning around and now starting to look up. So definitely exports growth for us in the last few months, as you have seen, has already started moving up, and I think this will continue this year.
Parikshit Luthra:
Right. How much do exports contribute as far as your total revenue is concerned, and where do you plan to take it by 2030?
Sudarshan Venu:
Exports today are close to — I would say international business, because it's a question of now in some of the countries we are assembling, in some countries we manufacture. Future regulations may require more manufacturing in these countries. There'll be more products aimed at these markets. There are people operating or focusing on these markets — some of them in location. So I would say the international business is about 30% of our revenue. And I think it can be 40% or more by 2030.
Parikshit Luthra:
Speaking about TVS Credit — I believe that takes away a lot of your time as well. You've added 14 lakh new customers, your book size is ₹26,647 crores. What is the kind of growth you're targeting in FY26 with TVS Credit?
Sudarshan Venu:
I think yes, TVS Credit has taken time. We've invested significantly as a group in financial services and lending. We'll also look at other opportunities as we progress. On the lending side, I think we have a good customer base. We have increased that customer base through home credit. Combined, the asset — the loans — is about ₹30,000 to ₹33,000 crores. I think we will definitely look to grow that this year. 55% of our customers are new to credit. So it's a very interesting opportunity to bring them into organized credit and also grow with them as their needs grow and their demands grow and they want more products and more services. So that is something that we look forward to — as India's financial penetration increases in the next 10–15 years — to ride with them. In that context, we are launching gold loans, we are launching — of course — three-wheeler loans, and we will also look at LAP this year. It's over ₹1,000 crores of PBT last year for the group, and it's definitely something we are looking to grow. Last year credit growth was a bit muted because we had kept credit tight, and I think in some parts of urban India there was a bit of over-leverage across the system, as you know. As we believe so, we tightened credit. I think as growth is there and momentum comes, we will definitely look at growing the credit book by 15-plus percent this year.
Parikshit Luthra:
Sudarshan, about TVS Holdings — could you give us a sense of the companies under the TVS Holdings group right now?
Sudarshan Venu:
TVS Holdings today owns, of course, the shares of TVS Motors and also directly owns Home Credit. Lending, as you know, in addition to the two- and three-wheeler business, is an important focus area for the group. So we are continuing to invest and grow in both these areas, and we could possibly consider an adjacency like insurance.
Parikshit Luthra:
Okay, I would also like to ask you about the succession plan with aligned ownership that was approved by the TVS Holdings group. As a result, we've seen reports which say that Sudarshan Venu and your father are significant beneficial owners. What does this mean for the growth of TVS as a company and also your role?
Sudarshan Venu:
I'm very grateful to my father for the succession planning and for the responsibility and opportunity. I'm also truly grateful for his continuous advice and guidance, which I really value and cherish — which is really special. I think these declarations are there, and the group continues to focus on the core values and the sectors that we are in and how to grow.
Parikshit Luthra:
And this was important not just for you, Sudarshan, but for your entire family as well. Do you believe that that entire plan has now been executed in a very successful manner?
Sudarshan Venu:
I'm just very thankful for the way things are, and it's always good to have clarity and focus on the future and how to really do something that benefits customers, employees, shareholders, and the whole community at large.
Parikshit Luthra:
Give us a sense of what's driving you in terms of growing your business in the next few years — some of the learnings from your father, some of your own instincts. What do you want to bring to the table in terms of growing the brand over the next 10 to 15 years?
Sudarshan Venu:
I think — of course — the learning from my father is most important, and I'm really thankful and I continue to learn from him every day. I'm also thankful for our chairman, Sir Ralf, for all the energy and passion and tech that I've got from him and been inspired by him. I think we are in a unique moment in India where Indian companies are really growing global — particularly in our sector. And I think — secondly — we have a huge amount of growth in India as well, which we are capitalizing on, of course, in two-wheelers and three-wheelers but also in automotive and financial services. So I think we have that opportunity. And also, with a large two-wheeler market, you see — particularly Bajaj and us — going global. This is unique. And now they've done a great move of buying KTM as well — which they had worked on earlier and done successfully — and now taken control. So I think it's a great opportunity for Indian companies to really go global. And in our sector, if we can do that, and also as a group capitalize on opportunities like lending within India and scale those — I think it's a very exciting time over the next five, ten years, as you mentioned, or more. And so to leverage the TVS focus on customers, quality, and technology and make a difference in these chosen sectors would be amazing.
Parikshit Luthra:
Also, you have been diversifying your talent pool as well as you grow global — be it Norton, be it your EV business. Give us a sense of how you're recruiting people and using talent from within the company as well.
Sudarshan Venu:
I think definitely it is something we focused on over the last five or seven years. Probably it's coming out today in one shot, but it's something we've really done over a period of time. I think you mentioned our headquarters here. I think we've built a very good strategy team led by Sharad, which has come up with a lot of new ideas, new insights, new ways of doing things, ways of capturing opportunities. And that has been there for five years now. Probably you're seeing some of those results — whether it's building a more premium brand, going into e-bikes, or doing things differently in India or other countries — this has been happening. A few years ago, Bernard joined as our CTO and has built focus on EVs, electronics, connectivity. We also have very good internal talent. Manu is now playing a key role, Rahul as well. And many of the Indian talent have had opportunities to grow at Norton as well as we seek to launch it. Of course, in recent times, we have also brought in senior colleagues from outside — Gaurav, who runs the India business — and Peyman, who runs the international business, and also in other areas of the group. So I think we are balancing between internal talent, talent which has come over and assimilated and over a period of time brought their own unique values and capabilities, but yet in line with TVS's vision and strategy — and also newer people. And of course, people like KNR who have been strong leaders who work closely with me or K Gopala Desikan continue to be there and guide the group. So I think it's a balance. And I think having strong internal teams as well as people who come and assimilate, and people who are joining more recently and will assimilate well — that balance is something which we are really leveraging. And we have a good mix now of non-Indian talent in our chairman and also some senior executives. And I think today — so that’s at the top, Parikshit. But I think also in the middle — many of the newer projects that we are doing are giving opportunity for talent. Whether it’s in Norton, whether it’s in e-bikes, whether it’s in the international teams of TVS or in India itself — on the newer things that we’re doing — some of the new launches like Ronin or iQube have been done by very young guys who have been in TVS. So I think there’s also the opportunity we are able to give. And lastly, today I think we have become more aspirational to work for so across the group — people from IIT, people from IIM — today see TVS as a company to work for. And I think we are committed to give them opportunity, experiences, exposure, and growth as we grow.
Parikshit Luthra:
Right. In terms of the total growth that you are expecting in FY26, how much would that be, Sudarshan, considering the current challenges?
Sudarshan Venu:
I think we are looking at double-digit growth, both in revenue and volume terms. And ofcourse to grow faster than the industry, Parikshit.
Parikshit Luthra:
Let’s have some rapid fire questions with you. Let’s begin by asking you about your favourite motorcycle
Sudarshan Venu:
The new Norton Superbike which is coming soon.
Parikshit Luthra:
A motorcycle which is not from the TVS Motor Company group?
Sudarshan Venu:
BMW, KTM, and of course Ducati.
Parikshit Luthra:
Right. What do you do in your personal time? What’s your go-to thing?
Sudarshan Venu:
Just hang out a bit with my family and friends.
Parikshit Luthra:
Favourite riding spot around the world?
Sudarshan Venu:
The Alps — on the German side.
Parikshit Luthra:
Favourite book?
Sudarshan Venu:
During COVID, I read some excellent books which Professor Ram Charan suggested — including "Ride of a Lifetime", some of the Jim Collins books — really enjoyed them.
Parikshit Luthra:
Favourite food item?
Sudarshan Venu:
Dosa.
Parikshit Luthra:
Favourite businessman?
Sudarshan Venu:
My father.
Parikshit Luthra:
One value you really live by and you look for when you're hiring somebody?
Sudarshan Venu:
I think hiring people is more than just one simple thing. I think people have so many attributes and TVS has its own values and culture. So it’s important to understand the fit, the capabilities they bring, and of course the opportunity we can give. So I see it as an important decision — both for us and for the individual. So it’s difficult to simplify in one word.
Parikshit Luthra:
Alright, thanks very much Sudarshan for talking to us, taking out time for us here in Singapore. That brings us to the end of this special interview with the Managing Director of TVS Motor Company, Sudarshan Venu. Thank you for watching. Goodbye.
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