TVS Motor Company, the only Moped manufacturer of mopeds in India, is expecting that support from retail finance companies and a possible reduction in Goods and Services Tax (GST) rates for two wheelers might help reduce the impact of implementation of Bharat Stage VI (BS VI) norms on moped prices. Analysts say that the transition from BS IV to BS VI emission norms could push up the cost of mopeds. The increase due to smaller size and ticket size is expected to be steeper for mopeds compared to other twowheelers. Vivek Kumar, Auto and Auto ancillaries sector analyst, JM Financial Institutional Securities said, “In terms of percentage of vehicle price, mopeds may see 15-18 per cent effective price increase to the customer vis-àvis less than 10 per cent for a premium motorcycle”. K N Radhakrishnan, chief executive officer (CEO), TVS Motor Company said during an earnings call that the company’s mopeds will continue to meet all regulations.
Already, TVS mopeds have moved from 2-stroke engines to 4-stroke, and electric is on the anvil. Analysts said the impact of BS-VI on the price of mopeds can be significant as technology-related costs will be much more than that on scooters or motorcycles as a ratio of the retail price. Prices of TVS mopeds range between Rs 29,000 and Rs 38,000. BS-VI compliance will require the addition of a fuel-injection system, along with a three-way catalytic converter, an electronic control unit, an onboard diagnostic module and an O2 sensor, according to an auto expert. “We have unique qualities which cater to the bottom of the pyramid and it will completely comply with BS VI,” said Radhakrishnan. The company plans to tackle this problem with the help of TVS Credit Services, a financial services arm, and other retail finance companies. TVS Motor also expects the government to bring down GST on two-wheelers from 28 per cent to 18 per cent. “I think it’s a fair request (to reduce GST) from the two-wheeler association. It will be good for the industry.”