TVS Sales Surge in December 2023: 25% YoY Total Growth, 8% Exports

India’s leading 2W and 3W vehicle manufacturer, TVS Motor, demonstrated impressive sales performance for the month December 2023. The company closed CY 2023 with registering 25% YoY growth in Q3 numbers. Total sales grew by 33.14% YoY in domestic markets with 7.54% growth in exports YoY.
In a striking end to the year 2023, TVS Motor Company, a prominent player in the Indian and global two-wheeler market, has reported a remarkable surge in sales for the month of December. The company's year-on-year (YoY) total growth stands at an impressive 25%, signaling a robust performance in the market.

TVS Sales December 2023

When compared to the sales performance in the extended festive month of November 2023, TVS saw a total decline of 17.11% MoM. Motorcycles remained TVS’ best-selling category with 1,48,049 units sold last month accounting for 51.04% of total sales. When compared to 1,24,705 units sold in December 2022, sales grew by 18.72% YoY, gaining 23,344 units in volume. However, when compared to 1,72,836 units sold in November 2023, motorcycles saw a 14.34% YoY decline, losing 24,787 units in volume. The company sold 1,03,167 scooters last month with 18.72% YoY growth and 24% MoM decline and accounted for 35.57% of total sales. Volume gain YoY was 26,401 units and volume loss MoM was 32,582 units.

Total Sales Growth

The standout achievement for TVS in December 2023 is the notable YoY growth in total sales. TVS sold 38,848 mopeds in December 2023, whose sales accounted for 13.39% of the company’s total sales. Mopeds saw 48.30% YoY growth and a 10.73% MoM decline. The company sold 11,232 iQubes and TVS X with 1.45% YoY growth and a 33.07% MoM decline. iQube and X had sold 16,782 units a month before and hence there was a 5,550 units volume deficit MoM.
  

1. Domestic Market Resilience: The robust growth in domestic sales is indicative of TVS's ability to navigate the challenges posed by the domestic market.
2. Global Expansion Impact: TVS's global expansion efforts have evidently borne fruit, as reflected in the overall YoY growth.
3. Product Portfolio Strength: The performance of specific models within TVS's product portfolio has likely played a pivotal role in the overall sales surge.

Exports on the Rise

While the domestic market remains a key focus, TVS's success extends beyond national borders, evident in the 8% YoY growth in exports.

1. Strategic Export Initiatives: TVS's strategic initiatives in export markets have evidently paid off.
2. Product Adaptability: The adaptability of TVS's product lineup to different markets and regulatory requirements is a crucial factor contributing to export success.
3. Global Reputation and Brand Trust: The growth in exports is indicative of the global reputation and trust that the TVS brand enjoys.

Factors Driving the Sales Surge

Several factors have likely played a synergistic role in driving TVS's exceptional sales performance in December 2023.

1. New Product Launches: The introduction of new models or updated versions of existing ones can create a buzz in the market.
2. Festive Season Impact: December often witnesses increased consumer spending, driven by festive celebrations and year-end promotions. TVS may have strategically capitalized on this trend, offering attractive deals and promotions to boost sales during this period.
3. Customer-Centric Approach: TVS's commitment to customer satisfaction may be reflected in the sales figures.

Industry Implications

TVS's exceptional sales performance in December 2023 has broader implications for the two-wheeler industry in India and beyond.

1. Competitive Benchmark: TVS's surge in sales sets a benchmark for other players in the industry.
2. Market Resilience Amid Challenges: The sales surge signals a level of resilience in the two-wheeler market despite challenges such as supply chain disruptions, economic uncertainties, and regulatory changes.
3. Technology and Innovation Focus: The two-wheeler industry is witnessing rapid advancements in technology and innovation. ?

Challenges and Considerations

While celebrating the remarkable sales surge, TVS and the industry as a whole must be mindful of potential challenges and considerations.

1. Supply Chain Disruptions: Ongoing global supply chain disruptions could impact the availability of components and affect production schedules.
2. Regulatory Compliance: Adherence to evolving regulatory standards is crucial for sustained success.
3. Economic Fluctuations: Economic uncertainties can influence consumer spending patterns.

In total (2W + 3W, Domestic + Exports), TVS’s sales December 2023 charts lodged 3,01,898 units with 24.75% YoY growth as opposed to 2,42,012 units sold in December 2022 with 59,886 units volume growth. There was a MoM decline of 17.11% due to the 3,64,231 units sold in November 2023 with 62,333 units lost MoM.