In what could turn out to be one the most dramatic turnarounds for an automobile company in recent times, TVS Motor on Thursday unveiled a bold roadmap for the future.
Announces entry into three-wheeler segment
BANGALORE: In what could turn out to be one the most dramatic turnarounds for an automobile company in recent times, TVS Motor on Thursday unveiled a bold roadmap for the future.
The way forward not only involves entry into the executive segment of motorcycles with a brand new product, but also a foray into the three-wheeler market and development of industry firsts - hybrid two-wheelers and a bike that will run on CNG.
TVS has been facing a 10% decline in domestic sales throughout the current fiscal, mainly due to its absence from the executive segment which comprises 55% of the motorcycle market.
The company is hoping that with innovations on the product as well as technology fronts (and entry into executive bike segment with Flame) it would achieve 15% increase in sales in the January-March quarter next year.
Company chairman Venu Srinivasan said: "Sales are expected to remain flat even during the October-December period, but by the last quarter of this fiscal we should see 15% growth. That is when our new 125cc bike Flame would begin full production. We had cut down overall two-wheeler production substantially over the past few months but this should reverse and we should be back to a full schedule by October."
At present, TVS commands only 18% share of the total domestic two-wheeler market.
On the export front also, Srinivasan painted a rosy picture, with the company looking to touch half-a-million unit mark within four years from 1.4 lakh units this fiscal. Entry into three-wheelers and commencement of production at Indonesia are expected to help the company achieve its ambitious export targets.
On the product front, the company is entering the three-wheeler market at a time when many established players (such as Bajaj Auto) are mulling a gradual exit. Srinivasan said the growth within three-wheelers lies in the less than 1.3 tonne segment for domestic as well as export markets. Of the 5.4 lakh unit three-wheeler market, 2.4 lakh accounts for the petrol/CNG/ LPG variants (the remaining is diesel three-wheelers).
This is what TVS would address through the new products. The company expects to sell one lakh three-wheelers per year over time. In motorcycles, TVS would be entering the executive segment - which is dominated by Hero Honda with its Super Splendour and Glamour besides Suzuki Heat - with the 125cc Flame. This would address the large gap in its product offering till now.
Also, the entry level segment is being addressed with an upgraded StaR City, which would now come with 110cc displacement; an upgraded Apache is also being rolled out.
On the new technology front, TVS plans to bring a CNG bike and a Hybrid Scooty (using fossil fuel and battery combination) in the market. Both these concepts are path breaking since no other two-wheeler manufacturer offers these features as of now. Bajaj Auto has been talking of CNG/LPG powered vehicles but no two-wheeler maker has, till now, developed a hybrid vehicle for India.
Srinivasan said the CNG bikes, to be launched in the last quarter of this fiscal, would cut emissions by 50% and operational costs by 60%.
The market for a hybrid two-wheeler would be limited at present, he said the product would be launched within one year.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}