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Raising competetion takes toll on TVS

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  • Raising competetion takes toll on TVS

    Source: TVS Motor stock price set to skid further on rising competition











    Muted volumes, lower share





    Will new products help?



    Analysts are cautious. Given the rising competition and recent dip in sales volumes, they have across brokerages revised downwards their FY13 volume estimates for TVS by 2.5-7 per cent.

    Margins likely flat
    Standalone Ebitda (earnings before interest, taxes, depreciation and amortisation) margins for 2011-12, likely to be in the 7-7.4 per cent range, are likely to fall below seven per cent in 2012-13, feel analysts.


    Weak volumes, a low-margin moped business (40 per cent of overall volumes) and higher advertising spending to prevent loss of market share will exert downward pressure on margins, feels LKP Securities analyst Ashwin Patil.

    On the other hand, there are doubts over the turnaround of its Indonesian subsidiary which the management believes will achieve breakeven in FY13. Analysts though say it is unlikely to break even (target of 60,000 units) in the current financial year and is likely to add to its margin woes.

  • #2
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    • #4
      As expected. Nothing "new" in this news... Figures speak louder than words.

      Yes, new products will help them a lot I think. Because the present crop of TVS products just don't have the needed USP, except for maybe RTR 180 ABS.
      ---
      Brotherhood, Rules, Freedom. Xbhp.
      Indian riding = Alertness, Anticipation and Adjustment.

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      • #5
        There are some rumors of a Apache 200fi and a CARB Apache 220 doing rounds in the apache 180 thread...
        If one of these bikes is real and getting released... and if it has 23+bhp... then it might be of some good to the company...
        Apache 180

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        • #6
          Very sad thing for TVS .!!!
          sigpic
          For a true motorcyclist, the straight portions of the roads exist just to take him from one turn to the next!
          USED IN PAST: Ct100, Victor, Xcd 135
          CURRENT: PULSAR 200 NS
          FUTURE
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          DREAM BIKES
          : Ducati multistrada, Yamaha R6, KTM Super Duke

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          • #7
            They had it coming.a newer,bigger product has been due for at least 6 months now.
            Smoke rubber,not tobacco.

            -Life Through-the-Lens
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            • #8
              It is a laid back company, they dont react to market conditions, the future is bleak, all I can say their management talks more and does less. They will fall out of top 5 in a couple of years. They are still planning to launch, god save this company

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              • #9
                This is the situation when TVS sells a sizeable no. of Scooters and being the only manufacturer to also sell Mopeds in India.

                The top guys at TVS must be confused as to which segment to give more importance to: Scooters, Mopeds, Motorcycles (In India) and also Step Thrus (In Indonesia)..??

                TVS needs to get some strategic focus.. and fast.



                Last edited by payeng; 04-07-2012, 09:08 PM.

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                • #10
                  After Bajaj comes out with next generation bikes it would really hurt their sales. Better would be collect all their money now again cooperate with AVL or someone better and come out with a decent 135cc or 150cc and 200cc bike (for brand building). Around 4 years ago they displayed Velocity 160 which was actually a good design somewhat like FZ, even better in some aspects but sadly it never came out for production. Would have been a good replacement for the ageing Apache design.
                  Whats there in a signature?

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                  • #11
                    Originally posted by payeng View Post
                    This despite TVS selling a sizeable no. of Scooters and the only manufacturer to sell mopeds in India.

                    The top guys at TVS must be confused as to which segment to give more importance to: Scooters, Mopeds, Motorcycles (In India) and also Step Thrus (In Indonesia)..??


                    TVS needs to get some strategic focus.. and fast.


                    They are just doing around 1000 units per month in Indonesia. So better they invest in scooters and motorcycles now. Their exports have been declining too which is a major concern for them.
                    Whats there in a signature?

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                    • #12
                      The Apache launched around in 2006 was a good effort from TVS followed by the Apache RTR series.. but over time like the Karizma, the Apache series is becoming too familiar and has already lost the novelty/excitement.

                      Being a challenger to a market leader (Pulsar) in sports segment, TVS ideally needs to keep the excitement alive with aggressive changes and product refreshments faster than the leader (Pulsar).

                      Scooters/Commuter models for keeping the sales high is ok.. but for enthusiasts more excitement is needed on the Apache (or higher if possible) series. But with pressure on achieving sales numbers, I feel that the sports segment will not be given top priority.



                      Last edited by payeng; 04-07-2012, 09:18 PM.

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                      • #13
                        The volumes is what companies look at and that's fine.But the technological prowess and the flagship is what people associate the company with..TVS is fast losing the race and being static isn't the way forward
                        It all begins with a thumb-start -- Oh, wait, I forgot the kill-switch

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                        • #14
                          This was bound to happen...
                          Hope this would give a pinch in their back.....
                          We were Discussing,Karizma loosing its appeal,a few weeks back....Same goes for the RTR....
                          One of the most enthusiastic brand in India is now sleeping-its no way a good sign for the biking community...
                          HH Dawn - TVS Star City - Yamaha Gladiator - TVS RTR 180 - Honda CBR 250R - Yamaha R3

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                          • #15
                            TVS is reaping what it sowed(next to nothing).TVS always stood for "racing DNA unleashed" and it's high time that they got back to their strengths.
                            Firstly,they should get their product design right,apart from the RTR series of bikes,none of their 110 to 125cc offerings have met or matched what the customers of that segment demand.They want,no fuss,decent looking bikes and TVS has never been able to design a bike like that for the 110 to 125cc segment till date ,post victor that is.They tried going technical(TVS Flame) on this segment and found that what's needed is a UJM(universal japanese machine/refined/smooth/simple design etc) and not the kinda offerings they had.
                            They find themselves in a similar spot as when the JV with SUZUKI went and they had their backs to the wall.Back then they came out with the technical Victor and it fared very well to get them a lease of life.Now they are going back to the same Victor brand to resurrect their fortunes.But,the present scenario is tough ,as back then HONDA wasn't there ,competing directly that is.But now with the dream yuga Honda might end up owning the segment(s).
                            Bajaj has gone to the next level with their KTM tie-up and the pulsar200ns .The japs (HONDA,YAMAHA)have products which are(almost) exactly what their segments want.
                            Just like Bajaj has learnt the hard way ,TVS needs to learn that it's the pulsar and RTR(where performance and youthful design matters most) brand image which they can make and compete with the japs.
                            Tvs needs to get back to the "Racing DNA unleashed" by taking the RTR brand forward ,keep the lower segments as simple as their competition and hope that the RTR aura rubs off on the other lower cc offerings.
                            Life begins, once you hit the power band !!

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