TVS has spent Rs 50 crore in the development of the new motorcycle; holds potential for exports to ASEAN, Latin America, and European markets.
The recently launched TVS Apache RTR 310, which is priced at Rs 2.43 lakh, ex-showroom, has been developed with an investment of Rs 50 crore. The Indian OEM is looking to expand its mark in the premium-lifestyle naked motorcycle segment, not just in India, but in overseas markets – including Latin America, Europe, and the ASEAN region – as well.
- TVS aims to sell 25,000 units of its 310cc bikes in the first year
- TVS looking to break into the European market by FY25
- TVS mulling new sales channels in India for its expanded premium bike range
The key driver behind TVS’ move into this category is the rapid growth in the midsize naked motorcycle segment, which is estimated at 1.8 million units globally, and has seen a significant uptick in its contribution to the overall motorcycle sales. While the segment’s sales contribution was pegged at 15 percent around five years back, it has climbed to almost 21 percent in the present day.
In FY23, TVS Motor Company clocked overall domestic motorcycle sales of 9,10,376 units (FY22: 7,07,563 / +29 percent), and the introduction of the new model expands the two-wheeler major’s 310cc product range, which now includes the flagship Apache RR 310, and Apache RTR 310 motorcycles – both are based on the existing platform jointly developed with BMW Motorrad.
Presently, the company sells around 6,000-7,000 units of its Apache RR 310 motorcycle in India, annually, and with the addition of the latest model, it targets to double the domestic volumes from this category. “Globally, we are looking at a collective 25,000 units of the motorcycle in the first year of launch,” said KN Radhakrishnan, Director and CEO, TVS Motor Company, on the sidelines of the launch.
“In addition to India, we will be exporting the motorcycle to Latin America, ASEAN, and we will also be focusing on Europe this time around,” he added. While the deliveries of the Apache RTR 310 are slated to commence by end-September, the company will soon after start exporting the motorcycle to markets such as Thailand in the ASEAN region, and Latin America, while the European market will be addressed starting FY25.
“The TVS Apache is a well-loved brand with over 5 million customers globally, and the latest introduction with its first-in-class features will redefine the segment. This product is the hallmark of TVS R&D and technology, and there are several characteristics which will act as significant differentiators in addition to the agility and performance of this motorcycle,” Radhakrishnan said.
Exploring premium retail channels
The company will sell the Apache RTR 310 from its over 400 premium motorcycle dealers across the country, and says it is exploring newer channels to differentiate its premium offerings. “While presently, we are going ahead with our existing premium retailers, the future of premium distribution and customer experience, especially in the premium motorcycle and high-end EV categories could change. So, we are looking at new channels and various differentiating aspects that we would need to offer to consumers in this premium segment,” said Radhakrishnan.
“We are one of the leading players in the premium segment in India as well as international markets. Going forward, while we want to expand our market share to a higher level, we are more focused on the overall satisfaction of our customers. We are very optimistic about the festive season in the current financial year,” Radhakrishnan signed off.