TVS Motor to launch goods carrier, gearless scooter

March 9th, 2008 - 6:22 pm ICT by admin  

Chennai, March 9 (IANS) City-based TVS Motor Company Ltd will soon get into commercial vehicle segment, said a top official here Sunday. Talking to reporters after launching TVS King 200cc three-wheeler, company chairman Venu Srinivasan said: “Next year we will launch a sub-one-tonne goods carrier. A diesel-powered three-wheeler will also be launched.”

He also said the company would launch a gearless scooter, a segment that is logging growth even when the motorcycles are registering slide in sales.

“We are targeting 30 percent market share in eighteen months time. The market size is around 1.8 million units per year,” said H.S. Goindi, senior vice-president, international business and three-wheelers, TVS Motors.

According to Srinivasan, the three-wheeler is expected to beef up the top line by Rs.2 billion in the coming year, selling around 30,000 units.

Apart from the domestic market, TVS Motor will also export its TVS King to countries like Sri Lanka, Bangladesh, Latin America, Nigeria and others.

“The impact on the bottom line is difficult to quantify now,” Srinivasan added.

The Deming medal-winning company, which has a turnover of Rs.39.28 billion ($969 million), has invested around Rs.1.2 billion in developing its two-stroke three-wheeler in three versions - petrol, LPG and CNG.

“There is lot of commonality of components between our three-wheeler and two-wheeler engines. There will be around five-seven percent cost savings due to common parts,” Srinivasan said.

As the sales of three-wheeler is largely dependent on the state government policy of issuing passenger carrying vehicle permits, Giondi said the company would work with various state governments to clear any misconceptions about this vehicle segment.

TVS Motor is also wooing the auto rickshaw driver community with slew of incentives.

The company is offering a free personal accident-cum-health insurance for the owner and his family (self, wife and three children) by paying the first year premium of Rs.264.

The personal accident insurance cover will be for Rs.100,000 and the health insurance cover will be for Rs.30,000.

Asked about using 200cc engine in TVS King while many others make similar vehicle with 150cc engines, Goindi said: “The cities are becoming bigger and there are more flyovers. It is time that three-wheelers are powered by high power engines.”

The on-road price of TVS King ranges between Rs.90,000-Rs.130,000 depending on the variant.

Asked about the possible impact the small cars could make on the three-wheeler sales, Srinivasan said: “We don’t foresee any impact on three-wheeler sales owing to the entry of Tata Nano or other cars.”

Earlier, Tamil Nadu’s Local Administration Minister M.K. Stalin launched TVS King by handing over the keys to two buyers.

Appreciating TVS Motor for its impressive growth from a Rs.1 billion turnover company in nineties to its current position, Stalin said the state was progressing well in its industrialisation.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |