TVS Motor India: TVS Motor Company betting big on fast growing 125 cc motorcycle, scooter segment in India
It is aiming to sell 5 lakh units of the two new products in the first year of launch.
“The 125 cc segment has grown at over 20 per cent CAGR in the last five years in the motorcycles category. We will aim to bring TVS’ sharp position and exciting products to this segment. It is a future growth area and it’s a profitable segment as well,” TVS Motor Company Joint Managing Director Sudarshan Venu told PTI.
He further said, “going forward before the end of September, we will also launch a 125 cc scooter and this segment has been growing at over 40 per cent CAGR in the last four years. Here we’re launching the Jupiter 125, which will build on the strong Jupiter platform.”
The Jupiter “franchise has been recognised in the market and over 4 million vehicles of Jupiter have already been sold”, Venu added.
Elaborating on the sales target with the new products, he said, “the combination of these two products, our goal is to do half a million vehicles in the first 12 months (of launch).”
He further said, “the 125 segment is really growing well. With these two launches, we expect to cater to this segment.”
The TVS Raider “will be for the millennials and the GenZ, which has really been a segment that TVS is focused on” and comes with many “first-in-segment” features such as different ride modes, smart connect and voice controls, he said.
Stating that the new 125 cc bike will build further on the “sporty” positioning that TVS has been able to establish through its TVS Apache motorcycle, he said TVS Raider is “really focused on the millennials”.
It will take on the likes of Honda Shine, Bajaj Pulsar 125, Hero Glamour, Hero Super Splendor.
Bullish on the company’s new product, Venu said, “I think 30 per cent of the commuter motorcycles are in the 125 cc with about 26 lakhs (annually). This industry has been growing at 20 per cent over the last five years, and we expect it to continue to grow and that’s why we are very enthusiastic about the new TVS Raider.”
He said the bike “will also have a good appetite and good prospects in the key export markets of TVS, including Bangladesh, Sri Lanka and Colombia” where the target customer profile is also similar to here in India.
On the upcoming Jupiter 125 scooter, he said it “will address the needs of the existing Jupiter scooter customers who “seek to upgrade to 125cc”.
“For the core scooter customer in India, it will have many first in segment features, including largest under-seat storage, start-stop functionality…, very good mileage, a large utility box with space for two helmets” among others, Venu said.