The market capitalisation (Mcap) of Chennai-based TVS Motor has surged 37% to $9.2 billion over the last six months, according to Bloomberg data. In contrast, Yamaha Motor saw a Mcap erosion of $1.6 billion from its August highs.
Homegrown motorcycle manufacturer, TVS Motor Company, which was less than half the size of Yamaha Motor Co. just seventeen months ago, has now overtaken the Japanese two-wheeler giant in terms of market valuation. This comes as investors continue to bet on a revival in both domestic and export markets.
The market capitalisation (Mcap) of Chennai-based TVS Motor has surged 37% to $9.2 billion over the last six months. In contrast, Yamaha Motor saw a Mcap erosion of $1.6 billion from its August highs. As of Thursday’s close, Yamaha Motor Company commands a Mcap of $8.8 billion, which is $348 million lower than that of TVS Motor, according to Bloomberg data.
Interestingly, Indian two-wheeler manufacturers make up four of the top five companies in the world. Bajaj Auto tops the list with a Mcap of $19 billion, followed by Eicher Motors with an $11.5 billion Mcap. Hero MotoCorp ranks fifth with a market valuation close to $8 billion.
TVS, which holds a dominant position in EV scooters, has managed to gain market share in every segment over the last few years. Its market share in the scooters segment increased from 16% to 23% between FY18 and Q1FY24. Another segment, 125cc+ bikes, saw an increase from 13% to 17% during the same period.
“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,” observed Jefferies in a recent note. The foreign brokerage further stated that TVS will be a key beneficiary of demand revival in domestic and export markets and its improving franchise provides headroom for further margin expansion.
While US-based Harley-Davidson ranked seventh with an Mcap of $4.3 billion, three Chinese manufacturers are featured among the top ten two-wheeler makers in the world.
By Yoosef K
https://www.cnbctv18.com/auto/tvs-overtakes-yamaha-market-capitalisation-to-become-third-largest-two-wheeler-maker-in-the-world-18101391.htm/
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