TVS Motor Company (TVSM) has announced its decision to transfer the complete benefit of the recent Goods and Services Tax (GST) rate reduction on internal combustion engine (ICE) vehicles to its customers, potentially leading to significant price reductions across its scooter and motorcycle lineup.

GST Rate Cut Details

The GST Council has implemented a substantial tax cut on ICE vehicles, reducing the rate from 28% to 18%. This new tax structure is set to take effect from September 22, 2025, promising to make TVS Motor's ICE products more accessible to a wider range of consumers. Meanwhile, electric vehicles will continue to enjoy the existing concessional GST rate of 5%.

Impact on Pricing

While specific price reductions have not been disclosed, the company expects the tax cut to result in substantial savings for customers across its ICE product range. TVS Motor has committed to passing on the full benefit of this GST rate reduction to its customers, which could potentially lead to a noticeable decrease in the prices of its scooters and motorcycles.

Management's Perspective

KN Radhakrishnan, Director & CEO of TVS Motor Company, expressed gratitude towards the government for these progressive reforms. He stated, "The GST rate rationalisation is a bold and transformative move that will accelerate consumption across society. We sincerely thank the Government of India for these progressive reforms."

Radhakrishnan further emphasized the company's commitment to providing mobility solutions, adding, "TVS Motor remains committed to providing mobility solutions that are trusted, reliable and provide unparalleled user experience."

Implementation and Communication

The benefits of the GST rate reduction will be available to customers starting September 22, 2025. TVS Motor has announced plans to undertake extensive communication measures to inform customers about the benefits resulting from these GST rate reductions.

Recent Financial Performance

In its most recent financial report, TVS Motor Company showcased strong performance for the June quarter. The company reported a net profit of ₹7.79 billion on revenue of ₹100.81 billion, indicating robust financial health.

Market Response

The announcement has been well-received by the market, with TVS Motor Company's shares closing 3.30% higher at ₹3,591.30 on the National Stock Exchange.

This move by TVS Motor Company, in response to the government's tax reforms, is expected to enhance the affordability of its ICE vehicles, potentially stimulating demand in the two-wheeler market. As the implementation date approaches, consumers and industry watchers will be keen to see the exact price revisions across TVS Motor's product range.

TVS Motor Company's stock reached a new pinnacle, reflecting the company's strong market position and recent product innovations. The two-wheeler manufacturer has also unveiled its latest offering, positioning itself at the forefront of India's competitive scooter market.

Record-Breaking Stock Performance

TVS Motor Company's shares touched a fresh lifetime high of Rs 3,500.00 before closing at Rs 3,426.90, marking an extraordinary journey since its listing in August 2000. The stock has delivered a staggering 27,852% return since its debut, transforming an initial investment of Rs 1 lakh into Rs 2.80 crore.

In the past five years, TVS Motor has outshone its peers in the two-wheeler segment:

Catalysts for Growth

Several factors have contributed to TVS Motor's impressive performance:

1. GST Reduction: The government's decision to cut GST on two-wheelers with engine capacity up to 350cc from 28% to 18%, effective September 22, has provided a significant boost to the sector.

2. Record Sales: In August, TVS Motor crossed the 5-lakh-unit milestone, with total two-wheeler sales growing 30% year-on-year to 490,788 units.

3. Product Innovation: The company has launched the TVS NTORQ 150, India's first hyper sport scooter, priced at Rs 1,19,000.00.

TVS NTORQ 150: A Game-Changing Launch

TVS Motor Company unveiled the TVS NTORQ 150, positioning it as India's quickest and first hyper sport scooter. Key features include:

• Segment-leading acceleration: 0-60 km/h in 6.3 seconds
• Enhanced safety with ABS and Traction Control
• Advanced TFT cluster with 50+ connected features, including Alexa and smartwatch integration
• Stealth aircraft-inspired design with MULTIPOINT® projector headlamps

Powered by a 149.7cc race-tuned engine, the NTORQ 150 delivers 13.2 PS at 7,000 rpm and 14.2 Nm torque at 5,500 rpm, with a top speed of 104 km/h.

Mr. Gaurav Gupta, President, India 2W Business, TVS Motor Company, stated, "TVS NTORQ 150 is inspired by the learnings from all our riders and will further strengthen our scooter portfolio. Combining race-inspired performance, advanced connectivity, and first-in-segment safety and control features, the scooter will delight the consumers and significantly build brand love."

Market Outlook

While technical indicators show the stock trading above its 50-day and 200-day moving averages, momentum indicators suggest it's in overbought territory. However, several brokerages, including Elara Capital, Axis Securities, and BNP Paribas, maintain a positive outlook on TVS Motor Company's prospects.

As TVS Motor continues to innovate and capture market share, investors and industry observers will be keenly watching how the company navigates the evolving two-wheeler market landscape and maintains its growth trajectory.