TVS Motor Company has no plans to exit the moped segment when India leapfrogs to BS-VI emission norms. K.N. Radhakrishnan, President, CEO & Additional Whole-Time Director, TVS Motor Company, confirmed in the Full Year 2019 Earnings Call that the company will sell mopeds even after BS-VI emission norms come into effect (1 April 2020).
TVS Motor Company's overall two-wheeler sales (including exports) grew from 33.67 lakh units in FY2018 by 11.6% to 37.57 lakh units in FY2019. While the motorcycles and scooters business grew by 15% each, mopeds witnessed a 2% growth. Commenting on the BS-VI upgrade for mopeds, K. N. Radhakrishnan said:
Moped will continue to meet regulation. Already, mopeds we moved from 2-stroke to 4-stroke, while we had electric-start moped. And we have unique attractive qualities which can cater to the bottom of the pyramid and it will completely continue for BS VI.
The BS-VI upgrade will see substantial percentage growth in the prices of the moped. TVS Motor plans to tackle this problem with the help of TVS Credit Services and other retail finance companies. The company also hopes that the government will bring down the GST rates from 28% to 18%. Radhakrishnan added:
I think cost increase here is for the industry. It is not only for the moped. If BS-VI happens, across the board, we will see cost increase. What we need to look at is the relative kind of a positioning in the industry. And like I said, we have to look at 28% GST. I think it's the fair request from two-wheeler association. The 28% bringing down to 18% (GST), it will be good for the industry, coupled with, I think, the TVS Credit Services, the retail finance arm.
TVS Motor Company sells only one moped, the XL100, in four different variants:
- XL100 Comfort: INR 29,990*
- XL100: INR 34,074*
- XL100 Heavy Duty: INR 34,824*
- XL100 Heavy Duty i-TOUCHstart: INR 38,474*
The models use a 99.7 cc, 4-stroke, single cylinder engine that delivers 4.3bhp at 6,000 rpm and 6.5 Nm at 3,500 rpm. The motor is paired with a single speed gearbox. BS-VI compliance will require the addition of a fuel-injection system along with a three-way catalytic converter, electronic control unit, onboard diagnostic module and an O2 sensor.