TVS Motor shares fell over 5% following the announcement of a new CEO appointment, with the stock declining as much as 5% as against a 1.9% decline in Nifty Auto. The sharp stock reaction reflects the market's sensitivity to K. N. Radhakrishnan's departure after an 18-year tenure at the helm, as reported by Mint. While Peyman Kargar is an internal candidate with extensive global automotive experience, investors appear to be taking a cautious approach to the leadership transition, particularly given TVS Motor's strong recent performance and elevated valuation. A company spokesperson responded to Mint's queries, stating that TVS's strategy reflects its strategic priorities across India and global markets, building on strong foundation of talent and leadership across the business.
Peyman Kargar has been appointed as the new Director and CEO of TVS Motor Company, effective January 27, 2027, according to the company's official announcement. The board of directors approved this appointment on August 28, as confirmed in the company's official release. K. N. Radhakrishnan, who has led the company since 2008, will continue as CEO until the transition and subsequently serve as non-executive director until the July 2027 AGM. This leadership change marks the end of the 'KNR era' in TVS Motor, a group he served for more than 40 years, 18 of them as CEO. As per Business Standard, Radhakrishnan is credited with steering TVS through some tough times, with Sudarshan Venu praising his commitment to both the company and consumers, stating he will be one of the longest-serving CEOs in the Indian automobile industry.
K. N. Radhakrishnan's transformational 18-year tenure has delivered exceptional financial results, with the company's revenue growing around 11-fold to ₹47,270 crore and net profit reaching ₹3,615 crore in FY26. According to Business Standard, in 2008-09 when he took charge, TVS' annual two-wheeler sales were 1.34 million units with revenue of ₹3,741 crore and net profit of ₹31.08 crore. In FY26, the company registered 24% growth with total sales increasing from 4.74 million units to 5.89 million units, while two-wheeler sales grew 23% from 4.61 million units to 5.67 million units. Total exports registered 33% growth with sales increasing from 1.19 million units to 1.59 million units, and three-wheeler sales grew 63% from 135,000 units to 219,000 units. The company's market capitalisation stood at ₹2.04 trillion on Friday, reflecting the remarkable transformation from a struggling manufacturer to a global automotive powerhouse.
TVS Motor is increasingly looking beyond India not just for growth, but also for the people shaping it. As the two-wheeler maker expands overseas and works to revive iconic British brand Norton, several key strategic roles are now being led from Singapore, Dubai and the UK, alongside a growing roster of executives with global experience. Chairman and managing director Sudarshan Venu and president group strategy Sharad Mohan Mishra are currently based out of Singapore, while Kargar, currently the president of international business, is based out of Dubai. The company had earlier this year also appointed former Jaguar Land Rover executive director Nick Rogers as its president and chief technology officer, based out of Bengaluru and Oxford in the UK. Gaurav Gupta, president of the company's India two-wheeler business, Aniruddha Haldar, head of EV and commuter motorcycle business and Vimal Sambly, head of premium business are all currently based in India. This strategic shift reflects TVS's approach of looking outwards for its next phase of growth in international markets to tap vast potential, with experts noting that the next wave of value creation is likely from global market access and technology partnerships.
Peyman Kargar currently serves as TVS International President and brings more than three decades of global automotive leadership experience across Europe, Asia, Africa and the Middle East. According to Business Standard, he previously served as global chairman and president of INFINITI, the luxury brand of Nissan Company, for over three years until March 2023, where he transformed the brand resulting in a 20% increase in volume and setting the business on a trajectory towards $1 billion in annual profit. During his tenure at INFINITI, he led the full value chain including product planning, R&D, manufacturing, quality, sales and marketing, and finance. Under his stewardship, the international business has become an increasingly important contributor to TVS Motor Company's global expansion, contributing 29% of the company's sales volume and growing at 33%. Kargar's career has taken him across several areas of the automobile business, including engineering, manufacturing, project management, quality, sales, marketing and business development, with senior roles at Renault, Nissan, Infiniti and Datsun. Notably, Kargar has never worked with an India-based automaker before TVS, joining the company as president international business in May 2025.
TVS Motor has absorbed a loss of nearly ₹2,000 crore to revive its British luxury motorcycle brand Norton, which is preparing for a phased expansion across the UK, Europe, India and the US in fiscal year 2027 (FY27). TVS had acquired the iconic brand in 2020 for ₹153 crore. In April, TVS signed a joint development agreement for electric three-wheelers with Hyundai Motor Group as part of its efforts to tap product expertise. Mint reported that the two companies are also testing a ride-hailing app to deploy these electric three-wheelers in Gurugram, Haryana. The company's approach of looking outwards for new leaders gathered steam after Venu, the son of chair emeritus Venu Srinivasan, took over as chairman in August last year. Two-wheeler makers are increasingly seeing a shakeup in leadership strategy, with Hero MotoCorp also picking top executives with experience from outside the industry as it prepares to shift focus on premium vehicles, exports and electric vehicles.
