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Mayur N. Shah

Mumbai, Aug. 25 As input and interest costs continue to be the primary factor for low sales output across the two-wheeler industry, various players in the segment are looking at alternative means to reduce costs that would help them tackle the ongoing challenge.

TVS Motor Company is working on reducing the product development cycle to six months by mid-2008, said Mr T.G. Dhandapani, Chief Information Officer.

This would give the company an opportunity to launch a new model every six months though the capability to launch more models is on the higher side, he added.

Earlier, the company had the capacity to introduce a new model every 24 months, which was later brought down to 12 and recently to eight months.

Product development would include conceiving the product to availability of the new product in the retail market. The IT Department has been generating feedbacks from the market, which have been compiled, analysed and worked upon to understand the demographic needs of the customer.

The compilation is done electronically thus saving time. Due to various tests conducted with the help of high-end computer technology, the company is able to save time in developing prototypes, said Mr Dhandapani.

Besides product development, the company plans to eliminate communication time with the suppliers.

For the after-sales service department, it has conducted a clinic test on one particular spare part whereby the supplier (automotive company from the ancillary industry) will directly supply the part to the authorised service station, thus resulting in a zero inventory for the principal for that particular part.

This exercise has resulted in a 3.5 per cent reduction of cost bringing it down to 2.5 per cent, which would be borne by the company.

More Stories on : Outlook | Two/Three Wheelers

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