India EVs: The Market Structure Question - Lessons from ICE

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India EVs: The Market Structure Question - Lessons from ICE

premium opportunities.

With a strong existing franchise, credible optionality in segments where leadership is still undecided, and the financial capacity

to pursue both, Bajaj appears best placed among the incumbents.

TVS Motor (Market-Perform): TVS has managed the electric transition better than most incumbents. The success of iQube

reflects what has historically worked in Indian two-wheelers: a trusted product supported by scale, distribution and strong

execution.

That said, the mass-market EV segment is attracting several well-positioned competitors with similar strengths. As a result,

sustained market leadership may be harder to defend and excess returns may be limited.

While we continue to view TVS as a high-quality operator, much of its execution success is already reflected in valuations. We

would look for a more attractive entry point before becoming more constructive.

Eicher Motors (Market-Perform): Royal Enfield remains one of the strongest franchises in Indian two-wheelers. Its

competitive advantages extend beyond the motorcycle itself to include brand equity, customer community, resale values and

loyalty — strengths that competitors have struggled to replicate for decades.

The key question is not the durability of the existing franchise, but whether that franchise can be successfully extended into

electric motorcycles. Until there is greater evidence on this front, we remain comfortable with the resilience of the core business

but see limited reason to become more positive. The market reception of Flying Flea will be an important indicator to watch.

Hero MotoCorp (Market-Perform): Hero remains one of India's most efficient manufacturing businesses. Its cost leadership,