TVS Motor expects swift recovery
"Despite the rising active cases, the company remains confident that adverse impact would be lower and bounce back swifter," TVS Motor Company said in its Annual Report for 2020-21.
New Delhi: TVS Motor Company expects a swift recovery in the market as it believes it is now better prepared to tackle supply-chain issues.
“Despite the rising active cases, the company remains confident that adverse impact would be lower and bounce back swifter,” TVS Motor Company said in its Annual Report for 2020-21.
The new long-term practices of social distancing could see consumer preferences change towards personal mobility leading to new demand in the two-wheeler industry, the company informed its shareholders.
“The company is cognisant of this opportunity, and well poised to leverage this opportunity with its superior product offerings across the widest range of personal mobility needs,” it noted.
The company sold 21.6 lakh units of two-wheelers in the domestic market in FY21, as compared to 24.1 lakh units in 2019-20.
TVS Motor Company said export of two-wheelers were likely to see a growth during the year fueled by consumption growth and stable economic and political situation in all operating geographies.
The company’s two-wheeler exports last fiscal stood at 7.64 lakh units, up 12 per cent from 2019-20.
It, however, listed shortage of semiconductors and containers for exports as major challenges going ahead.
“The increase in demand for consumer goods and unexpected growth in the auto sector has led to a supply shortfall of semiconductors and the lead time for these goods have increased from three months to 18 months.
“These semiconductors form a critical component in two-wheelers too. The shortfall of semiconductors is likely to continue and pose a risk in meeting the production demand,” the company informed its shareholders.
The company noted that there has been shortages of containers at Indian ports due to continued high traffic container movement from China to North America and Europe.
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