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Two- and three-wheeler maker TVS Motor Company has announced its entry into Central American market with a reputed local group Masesa (Mayor Servicios Socieda Anonima) as its sales and distribution partner.
This alliance is in line with the company’s plan to expand and strengthen its presence in Central America, Latin America, South-East Asia and West Asia.
“We see a huge opportunity in Central America, which is a half-a-million two wheeler market, and is growing. We want to get 25 per cent share of this market in three years,” said Sudarshan Venu, Joint Managing Director.
TVS Motor will be the second Indian two-wheeler maker after Bajaj Auto to enter this region, which is a fragmented market among the Chinese players.
Guatemala-based Masesa, which is a leader in motorcycle sales in the Central American region, will sell TVS Motor’s two and three-wheelers and provide service support in five countries – Guatemala, Honduras, El Salvador, Costa Rica and Nicaragua.
Masesa was distributing Bajaj’s vehicles in the region till some time ago.
“We at Masesa will represent TVS with great passion and pride, with the objectives of satisfying the demanding needs of our current and potential clients, we will work hard to successfully consolidate our new strategic alliance,” Samuel Espina, Regional Manager of Public Relations at Masesa, said in a statement.
In the next 12 months, Masesa will operate 500-600 outlets across the five countries to sell TVS models in the sub-200 cc categories.
Initially, TVS will sell a few existing models such as City, Phoenix, Wego and Apache and three-wheeler King. But, it plans to develop Central America-specific products.
TVS was shipping a few hundred units for sale in the Central American market earlier.
Now with a strong local partner, it sees opportunity to sell about 10,000 units a month.
TVS Motor aims to carve a niche in this region through better quality and aspirational products.
It expects to lure both new buyers as also others, who could be customers of Chinese models.
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