TVS Motor expects single-digit two-wheeler growth this festive season amid high-base effect
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Two-wheeler major TVS Motor Company on Thursday rolled out festive enhancements across its premium motorcycle portfolio of Apache and Ronin, saying it remains "cautiously optimistic" about demand in the upcoming festive season.
The Chennai-based company expects the two-wheeler industry to post single-digit growth this festive season on account of a high base created by pre-buying ahead of last year's GST rate cut, even as it highlighted strong momentum in the premium motorcycle segment.
GST-led demand surge creates tougher festive season comparison
"We are looking at a single-digit festive growth (for the industry) because last year, due to GST, there was already a huge impact as people were holding back purchases for a long time before the festive season started," TVS Motor Company Head Business, Premium, Vimal Sumbly told PTI.
Building on this momentum ahead of the festive season, TVS on Thursday unveiled 18 new motorcycles with enhancements across its premium range, including the Apache RTR 160, Apache RTR 160 4V, Apache RTR 200 4V and RR 310, along with the Ronin.
"This is the first time ever, in one day, we have launched 18 new motorcycles for the season," Sumbly said, adding that this year every product in the portfolio has been refreshed with upgrades and new colourways.
While declining to share specific numbers on the contribution of premium motorcycles (150cc and above), Sumbly said the segment accounts for 27% of the overall motorcycle industry, and that TVS's premium portfolio has grown at double the industry's pace.
Over the last two calendar years, the premium segment has grown at 12%, while TVS's premium portfolio expanded at 29% during the same period, which is more than double the segment's pace.
TVS Motor Company President, India Two Wheeler Business, Gaurav Gupta said that while the two-wheeler industry recorded strong growth this fiscal year, he remains "cautiously optimistic" about demand in the upcoming festive season, as it braces for a high base effect.
The festive season, which began with Onam in Kerala on August 26, faces a high base effect as two-wheeler sales had surged sharply during last year's festive period following GST rate rationalisation, which boosted affordability and triggered strong retail demand.
With GST-led gains already reflected in the September-December 2025 sales numbers, year-on-year growth comparisons this festive season are expected to be more challenging despite healthy underlying demand.
"As we go into this festive season and the second half of the year, the high base effect will come into play. But having said so, the overall demand, the overall flavour in the marketplace, we expect it to continue. It might get a bit moderated from the current growth rates, but we remain cautiously optimistic," Gupta said.
Premium motorcycle segment grows 12%; TVS portfolio expands 29%
Gupta said TVS is rolling out refreshed and upgraded offerings in the premium and super-premium motorcycle segments, including in its Apache range, to widen customer choice during the festive season.
"What you are seeing today is our offering in the premium and super-premium segment, where we have got refreshes and upgrades for our customers. This will help us offer more choice and variety, and bring more customers on to our Apache and the Ronin portfolio," he said.
On plans to attract buyers, he said the company would focus on "product refreshment, consumer promotions, and the overall festive flavour" to draw more customers to the TVS brand.
The company is also ramping up production and strengthening distribution to meet festive demand, ensuring dealer partners, suppliers and employees are aligned for the season, Gupta said.
Rural demand faces pressure from moderated monsoon, lower kharif output
On the monsoon and its impact on rural markets, Gupta said the season has been "moderated" this year, with reservoir levels at about 129.6 billion cubic metres — higher than the 10-year average but lower than last year. Kharif crop output is estimated to be about 16% lower than last year, he said.
"We remain cautiously optimistic and hope demand remains bullish as we go along," he said, while acknowledging a "damp" effect on rural sentiment this year.
On the prospect of a price hike amid rising metal prices, Gupta indicated the company would keep evaluating the situation rather than commit to holding prices.
"That is going to be a continuous call for any organisation. There are challenges, and other challenges keep coming up. As a company, we keep evaluating them. At the same time, one of our core values has always been value maximisation for the customer. We will look at the best way forward -- maximising our efforts through the process of innovation and cost offsets -- keeping the customer at the centre of our offering," he said.