New Delhi, Sept. 1
TVS Motor Company said on Thursday that it expects to launch its motorcycles in Indonesia by October next year.
"We have acquired land in Indonesia and trial production of motorcycles should begin in July next year and we expect to start selling by October," TVS Motor Company's Chairman and Managing Director, Mr Venu Srinivasan, said on the sidelines of the SIAM Annual Convention here.
The Indonesian plant would be the "mother plant" for the Asean region and it would have an installed capacity of a quarter million, he said. The plant, which is being built at an investment of $50 million, will be a wholly-owned unit of TVS Motor and is the first overseas venture by the company. "We may go in for a joint venture partner for distribution and marketing purposes,'' Mr Srinivasan added.
TVS is also setting up a motorcycle plant in Himachal Pradesh, for which it is investing approximately Rs 70 crore. "We will be manufacturing 100 cc-125 cc motorcycles in the Himachal plant," Mr Srinivasan said. The plant is expected to be operational by June next year. He said the company is also planning to build three-wheeled vehicles within a year at its plant in Mysore.
TVS raised $100 million through a line of credit from HSBC last year, which is being used to fund the company's new ventures.