TVS Motor weighs TVS Credit demerger to unlock shareholder value

TVS Motor Company is evaluating options to separate its financial services business, TVS Credit, as India’s third-largest two-wheeler maker looks to unlock shareholder value by spinning off the fast-growing unit.

“Looking ahead, the company may, at an appropriate time and in stages, guided by long-term strategic considerations, evaluate alternatives, including a possible separation of the financial services business to further strengthen and unlock shareholder value,” Sudarshan Venu, Chairman of TVS Motor Company, said at the company’s annual general meeting.

TVS Motor’s non-banking financial services arm, TVS Credit, recorded strong growth in FY26. Disbursements grew 26%, and the company ended the year with an asset base of over Rs 30,000 crore, serving more than 2.4 million customers across two-wheelers, consumer durables, tractors and other products.

“Over the years, the group has made sustained investments in building and nurturing its financial services business, which has evolved into an important part of the broader TVS ecosystem,” Venu said.

TVS gears up for Norton Motorcycles launch

Ahead of the relaunch of British motorcycle brand Norton Motorcycles, which TVS bought for ₹153 crore in 2020, the company is setting up the TVS Paddock premium retail network to support the brand’s growth in India.

“The all-new Manx R and Atlas have begun production and are ready to hit the market as we speak,” Venu said. “The Manx and the Atlas GT will also be launched during the course of the year in the UK, France, Italy, Spain, India and the US,” he added.

Norton Motorcycles’ first Atlas models rolled out of TVS Motor Company’s Hosur manufacturing facility in June.

In FY26, TVS Motor delivered its highest-ever annual sales volume of 5.89 million vehicles, a 24% increase from the previous year.

The company’s international business now contributes over a quarter of its revenue, with volumes rising to more than 1.59 million units last year. TVS Motor is present in more than 90 countries. “We see Africa, Latin America and Asia as long-term strategic growth markets, and we are now entering the European market as well,” Venu said.

“Africa, in particular, is at an extraordinary inflection point, with a young population and mobility needs that will only grow. We are a trusted brand in the African market, and we very much intend to build on that,” he added.