TVS Motor Company, at present, is doing pretty well in the Indian market and is hoping to change its policy in terms of frequency of vehicle introduction by launching a bike every quarter, something that is likely to change its position in the market.
At present, TVS Motor Company might not be at par with Bajaj Auto and Hero MotoCorp but it has certainly carved a niche for itself. While those two firms believe in consistently launching new models, TVS insists that this delay in their launches is deliberate and not accidental. However, they are going to alter this regime and now customers will see more TVS products in the market. Notably, this move was triggered by TVS’ performance in first quarter, which was pretty good.
According to sources, TVS is going to oversee an increase in both volumes and number of models over the next few years, three to be precise, with the aim of boosting market stand. A vehicle is going to be launched every quarter for three years on the trot. Industry experts believe this is certainly going to be beneficial for both TVS and the two-wheeler market in general.
Officials from the company, speaking about the matter, said that around Rs. 250 Cr will be invested in FYI 2015. Venu Srinivasan, Chairman and Managing Director of TVS Motor, said, “We are in the fourth position today and we target to be in the top three players in India, with the stream of product launches every quarter or four months for the next three years, which will significantly strengthen our position,”
Adding to this, KN Radhakrishnan, President and Chief Executive Officer of the firm, said that demands for models already in the market is quite high, something that has delayed the introduction of new models within the same segment. Industry experts feel that this practice is justified given that TVS does not have a reputation similar to that of Bajaj Auto or Hero MotoCorp.
Sources claim that TVS Scooty Zest was expected to be launched in the month of June but it was postponed to August due to high demand. Similarly, the increasing demand for TVS Star City forced the firm to delay the launch of new Victory by two months, shifting it to December from the originally decided September.
TVS Apache, the new model, is expected to be launched by the firm in the last quarter of the current financial year. Speaking about delayed launches, Venu Srinivasan said, “Unless we master the consumer-led engineering and quality, we would not want to launch a product.”
Taking advantage of the currently blossoming two-wheeler market in India, TVS Motor did fantastically well in the first quarter of the current financial year. The firm reported a growth figure of 23 per cent in this period, selling 584440 units as compared to 475363 units in the corresponding period last financial year. It was this sort of success that triggered the delay of a number of products by TVS Motor Company, Srinivasan said while addressing the audience in the annual general meeting.
Also, this was the first time in the past two years that the two-wheeler manufacturer saw an increase in the market share. In the first quarter of the current financial year, TVS reported a rise of 19 per cent in the domestic market, which was higher to the industry’s figure by 5 per cent.
Srinivasan, a key figure in the operations of TVS Motor, said that the firm expects to build on the momentum gained at present. Stating the example of the industry in general, he said that the two-wheeler market in the country has an expected growth rate of 11 per cent compared to that of 7.4 per cent in the previous year.
TVS will also be paying special attention to exports in international markets like Africa, Indonesia and South America. Srinivasan conveyed that his firm’s subsidiary in Indonesia is widely expected to reach a cash positive state by this year.
