Dr Harisingh Gour Vishwavidyalaya , Sagar Madhya Pradesh
( A Central University )
Mid 2 assignment on "TVS Motors Company Ltd”
A Project submitted to Dr. Harisingh Gour Vishwavidyalaya for Partial
fulfilment of the degree of
Master in Business Administration
In the School of Commerce & Management
In the Department of Business Management
Submitted by
Anu Krishnan P
Under the Supervision of
Dr. Pushpendra Kumar
(Guest Faculty)
Department of Business Management
Dr. Harisingh Gour Vishwavidyalaya,
Sagar 470003 M.P., India
Year : 2024 Regi. No.Y23282508
TVS Motor Company (commonly known as TVS) is an
Indian multinational motorcycle manufacturer headquartered in Chennai. It is the
third-largest motorcycle company in India by revenue. The company has annual
sales of three million units and an annual production capacity of over four million
vehicles. TVS Motor Company is also the second largest two-wheeler exporter in
India with exports to over 60 countries.
TVS Motor Company is the flagship company of the TVS Group, being the largest
company of the group in terms of valuation and turnover.
TVS Motor Company Limited
Company type Public
Traded as • BSE: 532343
• NSE: TVSMOTOR
Industry Automotive
Founded 1911; 113 years ago as T. V.
Sundram Iyengar & Sons Limited
Founder T. V. Sundram Iyengar
Headquarters Chennai, Tamil Nadu
,
India
Number of 4 two-wheeler and 1 three-wheeler
locations plants
Area served Worldwide
Key people • Venu Srinivasan
(Chairman Emeritus)[1]
• Sudarshan Venu
(Managing Director)[2]
Products • Two-wheeler
• Three-wheeler
• Automobile parts
Services • Vehicle service
Revenue ₹39,145 crore (US$4.7 billion)
(FY24)[3]
Operating ₹2,746 crore (US$330 million)
income (FY24)[3]
Net income ₹1,686 crore (US$200 million)
(FY24)[3]
Total assets ₹27,072 crore (US$3.2 billion)
(2022)[4]
Total equity ₹4,399 crore (US$530 million)
(2022)[4]
Owner TVS Holdings (50.26%)[5]
Number of 5,133 (2020)[4]
employees
Parent TVS Group
Subsidiaries Norton Motorcycle
Company (100%)
Website www.tvsmotor.com
VISION
To Tranform the quality of life of people across the world by
providing mobility solutions that are Exciting, Responsible,
Sustainable and Safe.
MISSION
To be one of the leading companies globally in our choosen
business segments, Providing the most compelling mobility
solutions.
1. Strengths of TVS
Innovative Products: TVS Motors has numerous innovative collections of products with its
unique design arrangement, quality, style as well as the production of fuel-efficient
automobiles, winning the hearts and trust of a tremendous amount of audience not merely
in one country or areas but in several cities and occasions of India. These customers are in
love with these products from teenagers, mid-age to full-grown adults.
Indian Customer Retention: The brand has won over the trust of thousands of Indian
consumers connecting emotionally with their hearts. No matter the product it may be
motorcycles, rickshaws, or mopeds. These customers are satisfied and happy to refer back
to TVS Motor for such future purchases. They are more likely to even recommend these
products to their friends, families and relatives.
TVS marketing ad- SWOT analysis of TVS | IIDE
Powerful R&D Team: TVS Motors has a powerful R&D department that always comes up
with splendid innovative designs regarding their product features and technology. This has
proven to be playing a great part in the TVS motors success story. This has given them a
competitive advantage that still keeps TVS Motors ahead of many brands, positioning in the
top 10 recommendations in the Indian automotive market
Massive Range of Collection: TVS Motors has a vast range of products to offer to make it
more than enough for its customers to choose from designs to efficiency such as Star City
motorcycle to Xl100 moped.
2. Weaknesses of TVS
Less Profitable: Even though the company is excellent in operating criteria, customer service
and research. Unfortunately, the profitability level is ₹53 crore that is on the low side in
comparison with ₹367 crores to Hero Motocorp which is extremely less for a company in
this highly competitive industry to survive in the long run.
Delayed New Innovations: It has been reported that TVS Motors takes longer to come up
with an introduction to new products regarding designs, models and innovation that may
cause a disinterest among the consumers especially in youngsters as this age factor will
prefer luxurious products in every aspect which could be a reason for driven away traffic
from TVS Motor to one of its competitors.
International Expansion: TVS Motors in comparison with other brands such as honda has not
considered expanding globally. Their mere focus is growth in the domestic market that may
affect the overall growth of the company in future coming years.
Less Creativity in Advertisements: TVS Motors has not put a tremendous amount of effort
when it comes to advertisements that may appear less appealing to investors and a few
customers.
3. Opportunities of TVS
Indian Market Capacity: Statistics have shown that the Indian market is going to be massive
in the coming future causing a dramatic increase in the demand for vehicles such as
motorcycles, rickshaws and mopeds. The domestic market size is estimated to be 49,000
which can be an excellent opportunity for TVS Motors.
Road Improvement: The Indian government has a magnificent plan regarding road structure
and road repairing as more people may feel satisfied as well as enjoy a great ride;
consequently, increase buying of such products. An increase is probable in the demand for
two-wheelers along with three-wheelers, especially in rural areas.
Increasing Demand Internationally: The demand for motorcycle products is rapidly rising in
foreign countries. Consumers are showing great interest in purchasing such types of
products. Other competitors of TVS Motors are already strategically planning to take
advantage of this opportunity. There is an expected growth rate of 6.4% CAGR in the
motorcycle industry internationally.
4. Threats of TVS
Developing Technology: As days pass by technology aspects of automobiles are completely
converting and rapidly evolving such as products like robot-driven cars with advancements
in safety features, interconnected traffic safety features. As technology is developing,
consumers’ choices and preferences are changing.
Highly Competitive Market: Despite product innovation TVS Motors has been unsuccessful
when it comes to automotive market competition. Since the initial stage TVS Motors has
been struggling to beat the competition.
Advancement in Public Transport: Public transportation is improving continuously. People
will prefer traveling from secure transportation rather than insecure ones, so this may
decrease the demand for two and three-wheelers.
Rapid Rise in Petrol Prices: In past years, there has been a great increase noted in the price
of petrol. There is a chance customers find it less affordable in the rural areas causing a
drastic shift in the demand curve resulting in a great loss.
PESTLE
Political Factors
- Importance of local governments in India – Unlike in most other countries, local
governments play critical role in policy making and regulations in India. TVS Motor Company
has to closely follow the states and territories it has presence in rather than devising nation-
wide policies in India.
- Taxation policies – Over the last two decades TVS Motor Company has benefitted from
lower taxation policies throughout the western hemisphere. It has resulted in high profits
and increasing spending in the research and development. The increasing inequality in India
can lead to changes in the taxation policies. Secondly local governments are also looking
into Auto & Truck Manufacturers specific taxation policies to contain the carbon footprint of
the Consumer Cyclical sector.
- Governance System – The present governance system in India has served its purpose for
the long time and I don’t think much will change in the process even though it may throw up
leaders that can lead divergent policy making from the historical norm. TVS Motor Company
has to keep a close eye on the industry wide government priorities to predict trends.
- Government of India has come under increasing global pressures to adhere to World Trade
Organization’s regulations on Auto & Truck Manufacturers industry.
- Changing policies with new government – Studying the current trends it seems that there
can be a transition of government in India in next election. TVS Motor Company has to
prepare for this eventuality as it will lead to change in governance priorities of Consumer
Cyclical sector.
- Other stakeholders such as non-government organizations, protest & pressure groups,
activist movements play critical role in policy making in India. TVS Motor Company should
closely collaborate with these organizations so that it can contribute better to the
community goals as well as with corporate goals.
Economic Factors
Economic factors includes – economic performance of countryname, labor market
conditions , the stage of economy of countryname, interest rate, exchange rate, consumer
disposable income, inflation rate, taxation rate etc.
- Increasing liberalization of trade policy of India can help TVS Motor Company to invest
further into the regions which are so far offlimits to the firm.
- Exchange rate – The volatile exchange rate of India can impact TVS Motor Company
investment plans not only in the short term but also in the long run.
- Economic Cycles – The performance of TVS Motor Company in India is closely correlated to
the economic performance of the India's economy. The growth in last two decades is built
upon increasing globalization and utilizing local resources to cater to global markets.
- Government intervention in the Consumer Cyclical sector and in particular Auto & Truck
Manufacturers industry can impact the fortunes of the TVS Motor Company in the India.
- Inflation rate – The easy liquidity in the market post the great recession of 2018 will lead to
increasing inflation in the India economy.
Social Factors
Each society and culture has its own way of doing business. These social factors can not only
help companies like companyname to better understand the way of doing business but also
in understanding the customer preferences in Consumer Cyclical sector of countryname.
Social factors include – health & safety attitudes, demographics, attitude towards certain
products and services, societal roles and norms, traditions, culture, acceptance of
entrepreneurial spirit, gender roles, and leisure interests.
Technological Factors
Technology is fast disrupting various industries and Consumer Cyclical is no different. There
are numerous ways technological factors are impacting the TVS Motor Company & Auto &
Truck Manufacturers in India. Some of the technological factors are – access to greater
information, access to mobile phones driving empowerment, population access to
technology, rate of technology driven change, innovation in customer services, nnovation in
product offerings, supply chain disruption because of technology etc.
Environmental Factors
Over the last decade sustainability and environmental factors are becoming critical for
businesses. Government and pressure groups are fast asking organizations to adhere to
environmental standards. Some of the environmental factors are – limiting carbon
footprints, safe water treatment, insurance policies, safe waste disposal, safe disposal of
hazardous material, climate change, increasing focus on sustainability, laws regulating
pollution etc.
Legal Factors
Legal plays an important role in the development of Auto & Truck Manufacturers sector in
any economy. TVS Motor Company management has to consider following legal factors
before entering international market – system of justice, copyrights law, time taken to
deliver justice, discrimination laws, biasedness toward home players, intellectual property
rights protection, data protection laws etc.
Objectives of TVS Motor Company
TVS Motor Company, a leading two-wheeler and three-wheeler manufacturer, has several
key objectives:
• Global Leadership: To establish itself as a global leader in the two-wheeler and
three-wheeler industry.
• Product Innovation: To continuously innovate and introduce new products that meet
the evolving needs of customers.
• Customer Satisfaction: To deliver exceptional customer experiences and build
strong customer relationships.
• Sustainable Growth: To achieve sustainable growth through operational excellence
and strategic investments.
• Social Responsibility: To contribute to society through various social initiatives and
environmental sustainability.
Key Policies of TVS Motor Company
TVS Motor Company has implemented several key policies to achieve its objectives:
• Quality Focus: The company is committed to delivering high-quality products and
services.
• Customer Centricity: The company prioritizes customer needs and preferences in all
its operations.
• Innovation: TVS Motor Company encourages innovation and invests in research and
development to stay ahead of the competition.
• Sustainability: The company is committed to sustainable practices, including
reducing its environmental impact and promoting social responsibility.
• Employee Empowerment: The company empowers its employees to contribute to
the company's growth and success.
Role of Strategists in TVS Motor Company's Strategic Management
Strategists at TVS Motor Company play a crucial role in shaping the company's future. Their
key responsibilities include:
• Strategic Planning: Developing and implementing long-term strategies to achieve
the company's vision and mission.
• Market Analysis: Analyzing market trends, customer preferences, and competitive
landscapes to identify opportunities and threats.
• Product Strategy: Developing product strategies, including product launches,
product life cycle management, and product positioning.
• Brand Management: Building and maintaining a strong brand image through
effective branding and marketing strategies.
• Financial Planning: Managing the company's financial resources and making sound
financial decisions.
• Risk Management: Identifying and mitigating potential risks that could impact the
company's operations.
• Innovation: Encouraging innovation and fostering a culture of creativity and
experimentation.
Conclusion
To sum up, TVS Motors has a huge mass of incredibly innovative products providing enough
options. The Company has the advantage of the brand trust of thousands in India. It has
been updated with technology although not the most advanced but not behind as well;
however, TVS Motors lacks marketing tactics and strategy.
This case study concluded that TVS Motors is weak in marketing, but with a huge increase in
the automotive industry. There is a very high competition where marketing plays a crucial
role-taking advantage of technology not merely in this industry in which every other
company is focusing on digital marketing to rise ahead of each other. If you are also
interested in learning digital marketing and its different aspects, do check out top-class
courses offered by IIDE.
