New Delhi: Chennai-based automaker TVS Motor Company has reached an important milestone, surpassing the market capitalization of Hero MotoCorp.

Shares of TVS Motor have gained 71 per cent so far in 2022, while Hero MotoCorp has gained just 2.4 per cent. This is all because of the strong rally in stocks this year.

As a result, Hero MotoCorp's market value of ₹51,069 crores has become slightly higher than TVS Motor's market value of ₹51,078 crores.

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TVS expects demand to remain high during the holiday season

When the company released its September sales figures, it noted that the holiday season was off to a strong start and that demand was expected to increase even further during the season.
Analysts believe that TVS Motor has been doing well in terms of sales in the last few years, especially since it forayed into the electric vehicle (EV) market.

TVS Motor has achieved a staggering success in the last two years thanks to the successes of its many new products and their stellar three wheeler sales. According to Piyush Parag, Deputy Vice President, Sharekhan by BNP Paribas, TVS currently lags behind Hero MotoCorp and Bajaj Auto in the EV space.

The growth in EV sales also helped TVS Motor's expansion. 4,923 TVS iQube Electric Units were sold in September this year as against 766 units sold in September 2021.

Hero Motocrop, a rival company, joined the EV party later as expected. Just last October, it introduced the VIDA V1 electric scooter. Ather Energy and Ola Electric are two well established players in the market.

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Additionally, it is more vulnerable to downturns across the industry. Hero MotoCorp will be severely affected if an industry as a whole performs poorly as it has the largest market share for two-wheelers. Since the occurrence of COVID-19,

According to Parag, Hero MotoCorp's two years were not good due to its excellent performance in the entry level and executive segments.

Hero MotoCorp's troubles were further compounded by reports in March this year that the Income Tax Department unearthed false expenses totaling Rs 1,000 crore deposited by the company.

TVS Motor remains strong overall despite export challenges

Middle East, Africa, South East Asia, Indian subcontinent and Latin and Central America are some of the countries where TVS Motor is present internationally.

However, its export sales are not doing well due to the tough economic environment globally.

With sales of 92,975 units in September 2022, the company's overall exports declined as compared to 1.02 lakh units in the previous year.

“On the international markets front, there has been a slight improvement, however, issues related to slowdown in the economy and rising inflation continue. According to the company, "We are cautiously optimistic that sales momentum will continue to improve.

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TVS Motor, which manufactures the largest variety of two-wheelers from mopeds to scooters and commuter motorcycles to racing-inspired bikes, has been able to offset slowing export sales with strong sales in other segments.