Lastly, we saw the Marketing Strategies of Tesla, today we will look at the SWOT analysis of TVS motor company.
TVS Motor Company is an Indian multinational automobile company specializing in the production of motorcycles, scooters and three-wheelers, headquartered in Chennai, India. It is one of the biggest names in the automobile industry in India.
The major element which has contributed to the success of the company is its smart marketing tactics. Marketing is essential for the growth of any business, to know more about marketing and its digital aspect, check out Free Digital Marketing Masterclass by Karan Shah, the founder and CEO of IIDE.
In this blog, we’ll go through the TVS Motor Company’s strengths, weaknesses, opportunities, and threats in-depth, but first, let’s learn a little about the company.
About TVS Motor Company
TVS Motor Company is an Indian multinational automobile company specializing in the production of motorcycles, scooters and three-wheelers, headquartered in Chennai, India.
With sales of around 18,217 crores (over USD 2.9 billion), TVS Motor Company is India’s third-largest two-wheeler manufacturer. It sells more than 3 million vehicles per year and has a capacity of about 4.95 million vehicles. TVS Motor produces the widest range of two-wheelers, including mopeds, scooters, commuting motorcycles, and racing-inspired bikes like the Apache and RR310.
TVS Motor Company, one of the major producers of personal vehicle products, is a strong believer in incorporating environmental, occupational health, and safety concerns into all business processes to ensure employee and company well-being.
A one-year partnership between TVS and Suzuki focused on technology transfer for the design and manufacture of two-wheelers exclusively for the Indian market. The business was renamed TVS-Suzuki and released various vehicles, including the Suzuki Supra, Suzuki Samurai, Suzuki Shogun, and Suzuki Shaolin.
|Founder||T.V. Sundaram Lyengar|
|Origin||Chennai, Tamil Nadu, India|
|No. of Employees||5133 (2020)|
|Market Cap||31,897 Cr (2021)|
|Annual Revenue||22,570 crore (2020)|
|Net Income/ Profit||655 crore (2020)|
Services Provided by TVS Motor Company
Following are the services TVS provides their customers –
- Two Wheeler
- Three Wheeler
- Automobile Parts
- Vehicle Services
Competitors of TVS Motor Company
Some of TVS’s top competitors are as follows:
- Bajaj Auto
- Hero Motocorp
- Honda Motorcycles
SWOT Analysis of TVS Motor Company
SWOT Analysis is a process of evaluating your company’s strengths, weaknesses, opportunities, and threats. It allows you to maximize your strengths, overcome your weaknesses, reduce risks, and increase your chances of success. SWOT analysis helps corporate decision-makers to develop strategic plans according to the internal and external factors of the company.
1. Strengths of TVS Motor Company
Following are the strengths of the TVS Motor Company which has helped them gain a strong position in the Indian automobile industry.
- Many Sub-brands – TVS offers motorcycles, mopeds, scooters, three-wheelers and features popular brands across all categories. Motorcycles, for example, include well-known brands such as Apache RTR and Star City.
- Strong Financial Performance – In recent years, TVS has had a strong financial performance. It recorded growth in revenue (12.3%) and operating margin (4.8%) in 2016. As a result, the company has improved its financial conditions, increased shareholder value, and supported its growth plan.
- Excellent Research & Development skills – TVS Motor’s strength lies in its extensive research and development process, creating products that lead the industry in innovation TVS has established a strong research and development department that enables continuous innovation in the design of its products and the inclusion of the latest technologies in its products.
2. Weaknesses of TVS Motor Company
Following are the weaknesses of the TVS Motor Company they need to work on
- Lack of Scale – Although TVS has had a recent increase in revenue, it still doesn’t stand out from big players like Bajaj Auto and Hero MotoCorp. These companies have a big advantage over TVS.
- Reliant on the Indian Market – India is the main market for TVS engines, accounting for more than 75% of sales. TVS has limited geographical diversity and is therefore too dependent on the Indian market. Any downturn in the Indian market will have an impact on the company’s finances.
3. Opportunities for TVS Motor Company
Following are some of the opportunities the TVS Motor Company can benefit from
- Growing Market – India has experienced rapid growth in the 2-wheeler market, it is also expected that it will continue in the near term. India is the world’s second-fastest-growing two-wheeler market. TVS will be able to capture the demand generated in the process of this.
- Growing Indian Three-wheeler Market – In India, the three-wheeler passenger and load carrier business is expanding, between 2005 and 2015, the three-wheeler industry grew at a CAGR of 4.4 percent. TVS has an advantage as a result of this. With multinational and national brands such as Yamaha, Bajaj Auto, Honda, and Hero MotoCorp, India’s two-wheeler business is fiercely competitive. TVS being subjected to such competition must constantly innovate to thrive in such a fiercely competitive atmosphere.
- Global Expansion – To capitalize on the favorable forecast for the global motorcycle industry, which is predicted to increase at a CAGR of 6.3 percent until 2019, TVS must look forward to expanding operations globally.
4. Threats to TVS Motor Company
There are a lot of threats to the TVS Motor Company as well they are as follows
- Intense Competition – With multinational and national brands such as Yamaha, Bajaj Auto, Honda, and Hero MotoCorp, India’s two-wheeler business is fiercely competitive. TVS being subjected to such competition must constantly innovate to thrive in such a fiercely competitive atmosphere.
- Environmental Regulations – The company is subject to several strict environmental standards that are constantly updated, leading to rising compliance expenses.
- Improvement in Public Transport – In India, public transportation is improving, posing a challenge to the passenger automobile industry as a whole.
TVS Motor Company is one of the leading automobile industries in India. It competes against companies like Yamaha, Bajaj Auto, Honda, and Hero MotoCorp, etc. Therefore it must constantly innovate its products to stay ahead of the competition.
Even though TVS’s revenue has increased in recent years, it still has a long way to go. After Hero MotoCorp, Bajaj Auto, and Honda, it is just the fourth-largest Indian motorcycle manufacturer. With India’s growing two and three-wheeler market, TVS should try to grab this opportunity and give its competitors a run for their money.
The company is using digital marketing effectively to get a competitive advantage. If you want to learn about digital marketing, IIDE provides multiple short-duration certified courses which can be completed in less than a week.
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