TVS Motor to play keyrole in local vehicle component manufacturing

By Nishel Fernando 

One of top global three-wheeler manufacturers, TVS Motor Company (TVSM) says it aims to play a key role in developing the local vehicle component manufacturing eco-system, paving the way for export of locally assembled vehicles in the future.

“If we want to become an export hub, we should prepare the ecosystem, you cannot just start exporting with 25-35 percent value additions, I believe it’s a long term game, and we are very committed for this,” TVS Motor Company (India), Vice President- International Business, Rahul Nayak told reporters in Colombo this week.

He shared these remarks at the launch event of their latest premium sporty motorcycle ‘TVS Raider 125’. 
TVS has registered a localisation rate of 29 percent in local assembly. For the ‘TVS Raider 125, it has 25 percent local value addition with plans to increase this to 35 percent in near future. 

According to TVS Lanka (Pvt) Ltd Chief Executive Officer Geethal Anthony, TVS source components such as crash bars, seats, tyres , battery and electric components from local components manufactures. Moving forward, TVS Lanka also plans to source other components such as body panels as well locally.

He pointed out that Sri Lanka components manufacturing ecosystem is in its early stages when compared to key established players such as India in this space. 

Moving forward, Anthony shared that TVS would play a key role in building this eco-system through technological transfers and supporting local component manufacturers to meet international quality and safety standards, which would allow them to become a global supplier.

In particular, he highlighted that Sri Lanka has the potential and the capacity to become a global player in the automotive parts aftermarket, which is estimated at US$ 576.5 billion in 2023 in size and is projected to reach US$ 984.7 billion by 2033.

“When we look at the Global Market, for an example, India manufactures in millions, we are at hundreds, but we are facilitating technology transfers, so what happens with the technology is that Sri Lanka will have a big aftermarket, so we will be able to manufacture for the aftermarket and we will be very competitive in the global market,” he elaborated. 

Commenting on possible future exports, after achieving the economies of scale, TVS Lanka would consider exports to international markets.

“When the industry starts growing and our volumes start growing, with economies of scale, we will look at exporting to international markets,” he added.

TVS’s local assembly plant has the capacity to produce more than 10,000 units per month, but it’s currently operating at around  2,500 units monthly.

Nayak remains bullish on significant growth potential in the personal transport sector in Sri Lanka with increased credit availability along with declining interest rates coupled with growing aspirations of youth.
TVS has an estimated over 40 percent market share in the two-wheeler segment in Sri Lanka.