The Hindu Business Line : TVS Motor sales down in May

TVS Motor's two-wheeler sales in May were 80,895 units against 96,203 units achieved during the same period last year, down by 15.91 per cent because of a lacklustre performance in the motorcycle market.

Last month, the company sold 43,180 motorcycles (63,0973 units), lower by 32.5 per cent.

A company release said motorcycle sales fell mainly due to the continued drop in the sales of two-stroke motorcycles and "planned marketing initiatives to inject Victor GLX 125, which will be available nationally by mid-June 2004."

TVS Motor's performance in the motorcycle segment had proved to be a drag on its profitability last fiscal. For instance, the company's profit in the third quarter of the financial year 2003-04 dropped largely on account of a fall in the sales of its two-stroke range of motorcycles.

On that occasion, the Chairman and Managing Director, Mr Venu Srinivasan, told a press conference that the company needed to reduce the time taken to introduce new products because the product life cycle had shrunk. "New variants are required at least once in two years. The (product) cycle has dropped from six years," said Mr Srinivasan.

The company's press release said Centra's sales had crossed 60,000 units since its launch in end-January 2004.

The company registered a growth in other key segments, namely, scooterette and moped. Scoterette sales in May were 17,321 units (14,334 units), while 20,394 (17,896) mopeds were sold during the same period. It exported 4,003 units in May, "the highest exports ever achieved by the company."

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