In a previous blog, we did a comprehensive SWOT Analysis of Suzuki – one of the most outstanding auto designers, Suzuki. In this blog, we aim to cover the SWOT Analysis of TVS company thoroughly.
TVS Motors – one of the top 5 two-wheelers in India. TVS Motors is known to be the 3rd motorbike seller. Did you know? In the initial stage, automobiles were not the central focus of TVS Motors solely.
It was in 1877, that TVS Motors initially plied its trade in automotive as well as in insurance and finance. The company completely shifted its main focus to designing automobiles in late 1955. It started gaining recognition worldwide in the 1980s because of its powerful marketing strategy.
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In this blog we will look at the SWOT analysis of TVS company, but before that let’s know more about the company.
About TVS Company
TVS Motors is an Indian multinational corporation located in Chennai, India. The company has expertise in manufacturing two-wheelers as well as three-wheelers in the automotive industry. The organization has a wide range of productions in millions of two-wheelers and three-wheelers.
The journey of TVS Motors began way back in 1911 with the Madurai bus service. T.V Sundaram started pursuing his dream by beginning a bus service later he chose a vision to form a cooperation in the automotive industry but not to sell cars, but something entirely different.
|Origin||Chennai, Tamil Nadu, India|
|No. of Employees||5,234|
|Market Cap||$280.23 Billion (2021)|
|Annual Revenue||US$3.0 Billion (2020)|
|Net Income/ Profit||$0.087 Billion (2020)|
Products of TVS Motors Products:
TVS Motors is a well-known name in the Indian automotive industry. It is famous for manufacturing and designing two and three-wheeler automotive including
- Electric Vehicles
- Automotive Spare-Parts
Top Competitors of TVS:
Some of the closest competition of TVS Motors includes
- Bajaj Motors
- Hero Motors
- LML (Lohia Machinery)
SWOT Analysis of TVS Motors
SWOT analysis is a strategic planning tool. With the help of this tool, managers can do a situational analysis of the company. It is an important and beneficial technique to evaluate the present strengths, weaknesses, opportunities & threats a company is facing in its current business environment.
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.
- 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.
This is a minus point for them as markets are converting day by day along with advancements in the technological factor.TVS Motors can lose many opportunities for brand awareness as well as attract investors.
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.
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.
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