TVS Motor Grew 22% in 3 Years: What Powered It?

For many of us, the name TVS brings back memories of a first ride—the zippy Scooty Pep, a trusty XL100, or the sporty Apache parked outside college. These weren’t just vehicles; they were milestones. Over the years, TVS has evolved far beyond nostalgia, emerging as one of the most dynamic and future-ready players in the two-wheeler industry today.

While peers have seen moderate growth, TVS has accelerated ahead, driven by smart product plays, a timely pivot to EVs, and strong execution across segments. This piece unpacks the levers behind that momentum and whether the company can keep riding ahead of the pack.

It’s not just the stock that’s racing ahead—TVS Motor is delivering across the metrics that matter. This piece unpacks the drivers behind the momentum.

The Growth Throttle

TVS has reported a strong revenue growth of around 22% between FY2022 and FY2025. In contrast, peers like Hero MotoCorp and Eicher Motors have seen relatively moderate growth of 10–12% over the same period. While Bajaj Auto’s FY25 results are yet to be announced, even factoring in an estimated revenue of ₹50,630 crore, its three-year growth would still be capped at around 15.1%.

At a basic level, a two-wheeler company’s revenue is determined by the number of vehicles sold and their average selling price. Revenue increases when either of these factors rises—or ideally, when both do—year after year.

As the two tables illustrate, TVS Motors has consistently demonstrated strength in both volume growth and pricing power. In contrast, the other two players operating in the entry to upper-premium segment (100cc–200cc) – Bajaj and Hero, have managed to improve either sales volumes or average selling prices, but not both.

Segment Shifts and Share Gains

In India, approximately 63% of total 2w unit sales come from motorcycles, which can be further segmented by engine displacement (cc). As of FY24, ICE scooters account for 30% of the sales mix, with the remaining share coming from electric vehicles and mopeds. Market demand for 2w motorcycles is moving away from 100cc motorcycles to 125cc bikes and scooters, including EVs. 

Let’s now examine TVS Motor’s market share performance for FY21 – FY24.

The blue markers represent TVS’s market share in FY21, while the green markers reflect the share in FY24. The most notable gains have come in the EV and 125cc motorbike segments, highlighting TVS’s strong alignment with both emerging and mid-range market trends.

From Petrol to Plug: The Product Evolution

TVS Motor has become one of the key winners as the two-wheeler industry shifts toward the 125cc+ segment, thanks to the success of the TVS Raider 125.

In scooters, the company has gained significant market share in recent years through popular models like Jupiter and Ntorq. As a result, scooters now contribute around 40% of their total EBITDA. This also means the company is somewhat exposed to risks from the growing shift toward electric vehicles.

However, TVS has handled this transition well. Its electric scooter, iQube, has done well in the market, making TVS the second-largest player in India’s electric two-wheeler segment. This strong performance shows that TVS is adapting well to changes in the industry and positioning itself as a flexible, future-ready company.

Profitability in Overdrive

While maintaining a diversified portfolio, the company has also focused on reducing production costs, leading to a sharp rise in gross profit margins—from 32.5% in FY22 to 39.4% in FY25. This improvement has driven a 41.25% compounded growth in EPS over the same period, resulting in a significant increase in ROE from 18.4% to approximately 29%. 

Future Gears and Guardrails

In FY25, TVS Motor allocated ₹1,800 crore in capex toward new product development across ICE, EVs, and both 2W and 3W segments—along with capacity expansion, particularly for the well-received Jupiter 110. Additionally, ₹2,100 crore was invested in subsidiaries and associates, continuing multi-year funding into ventures like Norton and its European e-bike business, though these have yet to deliver returns.

The company has applied for PLI benefits in its 3W EV segment and expects approval soon.

While the strong response to Jupiter 110 is expected to boost scooter market share, TVS underperformed the industry in motorcycles for FY25, especially in the 125cc segment, which has been its recent growth engine. Domestic demand weakened post-festive season, and export momentum remains uncertain.

Over the past three years, TVS Motor has clearly outpaced its peers—not just in terms of stock performance, but across core operational metrics such as revenue growth, product mix evolution, and profitability. The company’s success in the fast-growing 125cc+ segment, strong execution in scooters, and timely pivot to EVs with the iQube have positioned it as a forward-looking and tech-agnostic player.

In conclusion, TVS Motor’s leadership among peers has been driven by its strong presence in emerging product segments, prudent cost control, and proactive shift toward electric mobility. Going forward, its ability to sustain this momentum will hinge on how well it addresses the slowdown in domestic motorcycle demand and unlocks value from overseas investments. We will continue to track whether the company can stay committed to innovation, cost efficiency, and its EV roadmap amid evolving market conditions.

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy/sell any security or financial products.Users must make their own investment decisions based on their specific investment objective and financial position and using such independent advisors as they believe necessary. Windmill Capital Team: Windmill Capital Private Limited is a SEBI registered research analyst (Regn. No. INH200007645) based in Bengaluru at No 51 Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore, Karnataka – 560025 creating Thematic & Quantamental curated stock/ETF portfolios. Data analysis is the heart and soul behind our portfolio construction & with 50+ offerings, we have something for everyone. CIN of the company is U74999KA2020PTC132398. For more information and disclosures, visit our disclosures page here.