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Divya Trivedi

Ahmedabad, Oct. 9 Auto rickshaws will contribute to around 10 per cent of TVS Motor Company’s revenues in three years, said Mr K. Srinivasan, Vice President, Sales and Service (three- wheeler), at the sidelines of the launch of the TVS King zx.

“We should achieve 100 per cent capacity realisation of 1,000 autos a year in our Hosur plant in three years when we expect to do Rs 700 crore, which will be 10 per cent of TVS’ total turnover (Rs 7,000 crore). At present, we hope to sell 12,000-15,000 units of the rickshaw in the first year of operations,” said Mr Srinivasan.

The company launched its 200-cc two-stroke, electric start CNG version of TVS King and plans to launch the four stroke and diesel versions in a couple of months. The passenger three-wheelers will be followed by goods carriers. The LPG and petrol versions were launched early this year.

The company plans to set up around 40 exclusive sales and service outlets for the three-wheelers and increase the number of dealers from the present 70 to 100.

Bajaj is the other significant player in the three-wheeler space and Mr Srinivasan said, “Though we are priced at around Rs 2,000 more than the competition, we hope to make a dent in the three-wheeler market with a better product. We are also providing health and insurance benefits for the auto drivers and their families.”

TVS invested around Rs 120 crore at the Hosur plant, which will manufacture all the versions of TVS King. Priced at Rs 1,15,800 (hand-start model) and Rs 1,19,800 (electric-start model), TVS King has tied up with non banking financial institutions such as IndusInd and Shriram Transport and Finance Corporation.

The company hopes that around 30 per cent of its sales will happen in Gujarat where it has tied up with dealers like Kataria, Oceanic and Shri Sai Motors. The company reported a turnover of Rs 3,700 crore last year and is growing at around 17 per cent, he said.

More Stories on : Outlook | Two/Three Wheelers

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