TVS Motor Surpasses Yamaha in Market Valuation, Leading Indian Two-Wheeler Manufacturers

TVS Motor Company, a domestic motorcycle manufacturer, has achieved a significant milestone by surpassing Yamaha Motor Co., a Japanese two-wheeler giant, in terms of market valuation. This impressive development is driven by investor confidence in the resurgence of both domestic and international markets.

TVS Motor Leading the Two-Wheeler Manufacturer Pack

Over the past six months, the market capitalization (Mcap) of TVS Motor, headquartered in Chennai, has surged by 37%, reaching $9.2 billion. In stark contrast, Yamaha Motor witnessed a decline in Mcap of $1.6 billion from its peak in August. As of the most recent data, Yamaha Motor Company’s Mcap stands at $8.8 billion, which is $348 million less than that of TVS Motor, according to Bloomberg data.

Interestingly, four of the top five two-wheeler manufacturers in the world are of Indian origin. Bajaj Auto leads the pack with an impressive Mcap of $19 billion, followed by Eicher Motors with a Mcap of $11.5 billion. Hero MotoCorp ranks fifth with a market valuation close to $8 billion.

TVS Motor, known for its dominant presence in the electric scooter market, has successfully expanded its market share across all segments in recent years. Its share in the scooter segment has risen from 16% to 23% between FY18 and Q1FY24. Similarly, the 125cc+ bike segment witnessed an increase from 13% to 17% during the same period.

According to a recent note from Jefferies, “We believe the Indian two-wheeler industry is poised for a strong recovery from an abnormal cyclical trough; we expect a 15% volume CAGR over FY23-26E.” The foreign brokerage also emphasized that TVS is well-positioned to benefit from the resurgence in demand in both domestic and export markets. Additionally, its improving franchise offers opportunities for further margin expansion.

It’s noteworthy that the US-based Harley-Davidson ranks seventh in the list with a Mcap of $4.3 billion, while three Chinese manufacturers secure positions among the top ten two-wheeler makers globally.