TVS Motor Surpasses Yamaha in Market Cap, Signalling a Shift in Two-Wheeler Dominance

India’s TVS Motor Company has sped past Yamaha Motor Co. in market valuation. Just 17 months ago, TVS was trailing at less than half of Yamaha’s size. But the tables have turned, with investors optimistic about both domestic and international market rebounds.

What Happened? TVS Motor’s market capitalisation has soared by 37% in the past six months, reaching a whopping $9.2 billion. Yamaha, on the other hand, has seen its valuation dip by $1.6 billion since August, settling at $8.8 billion, as per Bloomberg’s latest data.

Here’s a fun fact: Four of the world’s top five two-wheeler manufacturers hail from India. Bajaj Auto leads the pack, boasting a market cap of $19 billion. Eicher Motors and Hero MotoCorp follow closely, with valuations of $11.5 billion and $8 billion, respectively.

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TVS’s rise isn’t just a fluke: The company, a dominant player in the EV scooter market, has consistently expanded its market share across segments. For instance, its share in the scooter market jumped from 16% to 23% between FY18 and Q1FY24.

Jefferies, a global brokerage firm, recently noted the Indian two-wheeler sector’s potential for robust recovery. They predict a 15% volume growth from FY23-26E and see TVS as a prime beneficiary of this resurgence, given its strengthening brand and potential for further profit margins.

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