GST rollout won't affect us, minor change in pricing at the most: TVS Motor

TVS Motor not expecting major impact after GST implementation

  Two-wheeler major TVS Motors has said that it is not expecting any major impact due to the goods and services tax (GST) implementation. The company is looking at being a strong No 2 player in the scooter market in the near term, said Aniruddha Haldar, Vice-President of Marketing (Scooters), TVS Motor Company.

"If you look at it for the year, I won't think it will affect us. The rate is not really different for us pre- and post-GST. So it is not that there will be a huge price benefit. It will be between 28-30 per cent now. There is no much of a change," he said.

He added that the pricing may have a minor change for a period of one or two months during the transition. But, it doesn't see any fundamental change.

Commenting on the company's position in the scooter market, he said that there was a brief period when the company lost its second position in the market, but it was due to the launch of a new model by a competitor.

"It is a good sign that when a good product comes in, they ride the size of the industry. Our intent is to become and remain a very strong number two," he said. The company is expected to launch a scooter and a motorcycle this year.

He said that the scooter segment is currently around 30 per cent of the two-wheelers sold in the country and this is expected to go up to 40 per cent over the next few years, with the increasing urbanisation, women empowerment, among others. He added that new niche segments are emerging in the segment, as the market is evolving.