TVS Motor Announces Partnership with Motoplex S.A.S

TVS Motor has inked an exclusive partnership with Motoplex S.A.S of Grupo Bonanza, a leading automobile business house in the Dominican Republic. This partnership is in line with the company’s plan to expand and strengthen its presence in the Caribbean region.

As per this partnership, Motoplex S.A.S will develop and operate 40 TVS Motor Company dealerships in the Dominican Republic.

Motoplex S.A.S currently operates through a network of more than 80 touch points in the region. This partnership with Motoplex S.A.S is a positive step for the company as Motoplex S.A.S, has a rich knowledge of the Dominican Republic and its customers.

Their large network reach in this region makes them the perfect strategic partner for TVS Motor. This will help the company to improve its 2 Wheeler volumes.

The company hopes to gain 150 bps market share in India 2Ws backed by new launches and success of existing strong brands (Jupiter and Apache). We believe the 2W industry to grow by 6-8% in FY18E driven by a normal monsoon and uptick in the economy. We have negative on the stock.