TVS margins concern experts amid muted demand, increasing regulatory costs

Earlier this week, TVS's chief executive officer said the firm would grow better in 2019-20

Despite TVS Motor saying it expects better growth in 2019-20, analysts have concerns.

The automobile maker says it expects an improvement in its margin, on the back of softer commodity prices and cost reduction, beside new product launches boosting growth in the domestic and export markets. However, analysts are raising concerns. These are related to the incremental cost with implementation of the BS-VI emission norms, in a muted demand environment, with tough competition. A higher monsoon deficit in some pockets of the western and southern regions, coupled with lower rabi sowing, is expected to impact rural demand, they say. 

Earlier this week,