ET INTELLIGENCE GROUP: Twowheeler maker TVS Motor may report a double-digit margin faster than what the Street is expecting, thanks to the encouraging response to its Apache 310 RR motorcycle.
The Chennai-based company’s first offering in the superpremium bike segment was launched in December. The customer response to the motorcycle was so strong that it now has booking for 4,000 units. It also helped increase footfalls in TVS showrooms by more than 50%, said industry sources.
A majority of the orders for the Apache 310 RR is coming from states such as Uttar Pradesh, West Bengal and Rajasthan, markets which typically have shown stickiness to the Apache brand. Many of the buyers are upgrading from the executive and premium bike segments. On a conference call after the company announced its Decemberquarter results, the management had indicated to the strong demand for the Apache 310 RR.
The company had guided sales volumes of 10,000 units in the first year of launch. According to analysts, the guidance has been conservative, given the initial traction it received and the addressable market.
In a recent note, Goldman Sachs said the addressable market for the motorcycle was already 120,000 units and growing rapidly.