TVS has just completed 10 years of the Apache series of motorcycles. The Apache brand, conceptualised and built with inputs from TVS Racing is also marketed as street bikes with "racing DNA". The upcoming TVS Apache RR 310S will carry forward the TVS Racing heritage, says Arun Siddharth, Vice President (Marketing) - Motorcycles, TVS Motor Company Limited.
CarandBike: The TVS Apache brand, with models in the 160 cc, 180 cc and 200 cc displacement, is the largest-selling brand of TVS motorcycles. In the 2016-17 financial year, TVS sold 2,96,354 Apache bikes. So, what have been the reasons behind the Apache brand's success?
Arun Siddharth, TVS Motor Company Limited: Apache is the leading motorcycle brand for TVS. Last year, we broke into the top 10 motorcycles in India, and it's probably only the second sports bike brand in the top 10. That's pretty big because if you see the overall picture of Indian motorcycle industry, it's only 15 per cent of the market which is the premium segment. Eighty-five per cent is still up to 125 cc and below 150 cc. So, coming from that standpoint, it's a significant thing, it's also an indication of our belief in our racing as a positioning for this brand. It's something that we have consciously invested in over a period of time.
We went into this in a big way, far ahead of anybody else, because if you see this segment overall, if you look at it, it's divided between "style-seekers" and "performance-seekers". And "performance-seekers" is a far smaller part of the premium segment. But we consciously went ahead with this, because we believe that's where we have a story to tell. Incidentally, this is also the 35th year of our TVS Racing division. So, that's where we have a story. If you look at the last three years, it's been a good story for the Apache's growth. I still believe this is only the beginning - I think, more than anything else, the opportunity is in growing the segment, rather than competing for share. I think 15 per cent is too small a percentage with the demographics we have, with the education, people coming out with good jobs and disposable income with a stable economy, I think the sky is the limit for this segment.
TVS Apache RTR 200 4V
What really is the focus of the Apache RTR series?
People want more from their bikes, people want more identity, and they are willing to spend because the disposable incomes are also increasing. And the roads are getting better; infrastructure for sporting events around motoring is getting better. It's not where it should be, but it's far better than where it was before. More and more manufacturers are coming into racing, so yeah, it's encouraging. We have been pioneers in this, we were the first to have a One-Make Race and yes, our Racing division is part of our R&D - everything that we do on the track goes straight to R&D and gets fed in (into our products). It's something we have been involved in for a long, long time, and in RTR we have a brand where this has been brought right to the fore. It's the job of this brand to take the 'mother brand' forward and say that we've been in this business for 35 years. And RTR is one of the brands which is "by the racers, for the racers". It's narrow and focussed on who we want to target it to, and that's how we want to keep it - the narrower the focus of the brand, the more is the appeal of the brand.
TVS Apache RTR 200
The 250-350 cc segment is one of the fastest growing motorcycle segments right now. So, going forward, will there be more focus on premium bikes rather than the commuter motorcycle portfolio?
We, as a company, are hugely into listening to the customer, and we define ourselves as a full-range two-wheeler manufacturer. We probably have the widest range of products from a moped to a 200 cc motorcycle, and there's more to come. We would like to be always seen as that. We would like to be known more as a two-wheeler mobility solutions provider based on a customer need, than a 'segment specialist', so to say. I think there's enough space for us to operate well in both the ends of the market. And a huge function of Apache's success, I think is due to the fact that the way the brand has been built over time, and the way the products have shaped up. I think it's a good combination of marketing and products, I think we were the first to introduce the fuel injection on 160 cc, we were the first to introduce ABS, over-square engines, which were not in that segment, rotor petal disc brakes, etc. These are small technical things and technologies, but huge innovations. These improve the basic quality and standard of ride. Consumers see this when you say "racing", they see these things and they connect the dots. I would say it's a very good combination of product definition and marketing which brings out the product definition to life, and help that happen.
TVS Apache 200 4V
How much of this focus on performance bikes is driven by customer voice and how much by actual market data?
It's a combination; it has to be a combination of both, because at the end of the day it has to make good business case. If you pull back a bit and not just look at the industry-specific numbers. If you look at the average young population, the fact that they are so educated, the fact that their disposable incomes are going up, roads are getting better, even in semi-urban towns, semi-rural areas. I think overall the industry is beginning to pick up, the sensibility about riding is improving. The exposure to various international events is going up, the accessibility to trends worldwide is going up, the exposure is going up. I think that is far more important than what we see in pure numbers today. While numbers play an important part, we as marketeers, as product definers look more at trends and then try to future forecast, rather than just looking at today's numbers, while that is an important part to see how big is the pie.
TVS Apache RTR 200 4V
There is also a lot of interest in small to mid-size adventure bikes, what is your take on this adventure segment?
We have a brand that is doing fairly well. It's capable of doing much, much more. Right now, our strategy is very very sharply defined on the fact that we need to grow this market. We'll make anything and everything possible to make the RTR franchise grow first, because that's the brand we have in hand. Having said that, we are a full-range two-wheeler manufacturer and we listen to consumers very closely. We have tremendous amount of consumer panelling, not just on ground, but on digital too, and we sell the Apache brand across 68 geographies and we have just crossed the 2.2 million mark. Different countries require different things, and we need to listen to these consumers. But at this point, our sole effort is behind growing the RTR franchise. Based on the need and the business case, and if there's a market for what you're talking about, we'll approach it at the right time. But right now, the focus area will be on the RTR series.
(TVS One Make Race)
What about TVS Racing? What next in the motorsport area?
We need to be pushing much harder at Dakar this year. Dakar will be going to be a big focus area apart from the domestic INRC, supercross, motocross area, Raid de Himalaya. There are a lot of new events which will be going to be held in South Asia. I think the basic focus will be continuing the theme which we have been following for 35 years; it happens to be the 35th year of TVS Racing this year, so it's a very opportune time for a new model to be coming in. I think it's going to be a big year for racing, we're going to keep pushing, more and more, in terms of domestic as well as international championships. The focus is on participation, on getting more exposure, and getting us more and more ready for Dakar. National championships are also the big goals. We really believe that the national championships are becoming more and more competitive. We believe that India is our mother market and it's extremely important that TVS Racing continues to dominate, because it's the mother brand for the RTR franchise also.
