TVS Motor Company makes a historic leap in research and development spending by crossing ₹1,000 crore for the first time in FY25, driven by a strong push into electric mobility and advanced vehicle technologies, while CEO Sudarshan Venu assumes chairmanship and benefits from a 30% pay rise amid robust revenue and profit growth.

TVS Motor Company (TVSM) has truly set a new standard in its research and development efforts, shelling out a hefty ₹1,025 crore in the fiscal year 2024-25. That’s quite a jump—about 59% higher than last year—and it’s the first time they've crossed the ₹1,000 crore mark in their history. This big boost in R&D funds reflects their strategic push into cutting-edge technologies, covering everything from internal combustion engines to electric mobility, alternative and flex fuels, advanced safety features, and sustainability measures. According to their 2024-25 annual report, these investments have been crucial in boosting their design, computing, and validation capabilities—arming them for future-ready vehicle tech that can keep up with changing market trends and tougher regulatory standards.

Sudarshan Venu, who’s managing director of TVSM, called FY25 a milestone year, packed with record-breaking results. He pointed out that despite global uncertainties, the company stayed resilient by strengthening their local manufacturing footprint, expanding their sourcing network, and forging long-term relationships with vendors. Venu underlined their long-term vision, aiming to deliver “compelling and aspirational mobility solutions globally.” Interestingly enough, the company also announced that starting August, Venu will take on the additional role of Chairman. As a result, his total pay for FY25 will jump by 30%, landing at ₹44 crore, which seems to reflect his dual leadership responsibilities quite well.

On the financial front, TVSM showed robust growth—total revenue climbed 13.7%, reaching ₹36,309 crore, while net profit shot up by a impressive 30.5%, hitting ₹3,629 crore. These numbers were driven largely by strong sales both at home and overseas, which hit new highs. Export markets—especially in regions like Africa and Latin America—saw a 22.8% boost in two-wheeler exports. This solidifies TVSM’s spot as the second-largest two-wheeler exporter in India, with their products available in over 60 countries. Their global market share crept up slightly, to 6.4%, a modest 0.2% growth year-on-year, signaling steady international expansion.

One of their highlight wins is definitely their flagship electric scooter, the TVS iQube. Sales of the iQube increased by 45% compared to last year, and it’s now the best-selling electric two-wheeler in India in the early part of FY26. It’s clear that EVs are a top priority for TVSM—they’re positioning themselves alongside premium offerings, scaling up commercial mobility services, and focusing on sustainability and global markets, all as part of their five key pillars for future growth. Pretty ambitious, huh?

Looking ahead to FY26, the outlook seems pretty positive, thanks to encouraging macroeconomic factors like lower repo rates, higher income tax rebates, and infrastructure-driven consumption growth. Still, the company is aware of challenges too. One of their main priorities right now is diversifying the battery supply chain—reducing dependence on rare earth minerals and specific countries, especially given how tricky global supply and geopolitics around battery materials can be. This move aims to mitigate risks associated with resource scarcity and geopolitical tensions that could impact their supply.

With India’s third-largest motorcycle manufacturer status—producing over four million units annually—TVS Motor’s aggressive R&D investments and strategic growth plans show clear ambition to lead the transformation in both the domestic and international two- and three-wheeler markets. Their ability to combine innovation, healthy financials, and resilient supply chains will be essential as mobility trends evolve and regulations become even more complex. Honestly, it’s pretty impressive how they’re positioning themselves right now; the road ahead seems promising for TVS.

Source: Noah Wire Services