TVS Motor Company plans to launch about eight two-wheeler models, including six motorcycles in the next 15 months in an aggressive bid to increase its share in the world's second largest two-wheeler market, its president C P Raman said on Tuesday.
The Chennai-based firm expects the new two-wheeler models to drive sales up by about 39 per cent to about 1.6 million units during 2004-05. It is also working on its maiden passenger carrying petrol three-wheeler, which would be launched next year, Raman told PTI in New Delhi.
Besides, the company hopes to set up a manufacturing facility in Indonesia or Philippines by June 2005, he said.
"During the fiscal ending March 31, 2004, we should sell about 1.15 million two-wheelers, including about 700,000 motorcycles. Next fiscal, the sales should increase to nearly 1.6 million units," Raman said.
The sales of 1.15 million two-wheelers this fiscal would be a 4.5 per cent growth as compared to 1.11 million vehicles sold in 2002-03.
TVS Motor, which separated from an equity and technical alliance with Japan's Suzuki Motor Co about two years back, witnessed increasing sales of its motorcycles after the launch of the 110cc Victor model.
The company plans to introduce a new variant of the 150 cc Fiero F2 motorcycle, two variants of the Victor including a 125cc model and few models in the premium segment, which comprises of models costing over Rs 45,000. Besides, it would launch two spruced up variants of the Scooty scooterette.
TVS Motor would also enter the highly competitive 100cc commuter segment with a new model. The segment is now dominated by the Bajaj Boxer and Hero Honda CD-Dawn which are priced at about Rs 32,000. Earlier this month, TVS launched a 100cc motorcycle Centra with premium features at Rs 37,000.
"We should be in Indonesia or Philippines by the middle of 2005. The plant can either be an assembly unit or full manufacturing facility. We may go on our own or through a joint venture," Raman said.
On the exports front, TVS Motor expects to ship 25,000 vehicles this fiscal and more than double it in 2004-05, he said, adding that motorcycles would comprise 85 per cent of the total volumes.
To cater to rising volumes, the company would invest Rs 240 crore (Rs 2.40 billion) to boost production capacity to two million units in the next fiscal. About Rs 100 crore (Rs 1 billion) would be spent this year on new product development, which is about 3.4 per cent of the turnover.
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