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TVS Motor Company is lining up new model launches and investments in product development and capacity expansion that will grow its market share in two-wheelers.
The two- and three-wheeler manufacturer hopes to achieve one-fifth market share in two-wheelers over the next two years. The company has a 14 per cent market shareas of February 2017 on a total volume of 16 million units. It hopes to sustain its share in that range against a targeted 15 per cent.
“In Q3, we were just above 15 per cent, but market growth was slow in the last few months due to demonetisation. Otherwise, we would have ended the year with more than 15 per cent share. I believe market should be back to normal from April onwards,” K N Radhakrishnan, President and Chief Executive Officer, TVS Motor Company, said in an interaction with media persons on a visit organised by the company to its factory in Hosur.
“Our objective is to achieve market share of 15.5 per cent by the end of next fiscal and 18 per cent in 2018-19,” he added.
TVS Motor expects rural demand to be better in 2017-18 than last year with the prospects of a healthy monsoon and higher budgetary allocation towards rural development. While industry growth is pegged at 8-10 per cent for 2017-18, the company expects to achieve higher-than-industry growth.
New launches In 2017-18, it plans to introduce at least two new models – a scooter and a motorcycle. Also, it is likely to come out with upgrades and new variants of existing models.
Capex plan TVS Motor will earmark about ₹350 crore capex for 2017-18 for new product development and capacity expansion on expected revival in the two-wheeler demand in the first half of coming fiscal.
Post-demonetisation, the company has seen demand revival happening in urban centres, but rural market is still a concern.
TVS Motor has moved to the production of BS-IV vehicles from February. The price increase due to cost escalation on account of BS IV norms will be in the range of 1.5-2 per cent depending on the models.
TVS-BMW venture Radhakrishnan said that its super bike launch plan was on track, but declined to elaborate. The TVS version of 310 cc super bike Akula, produced out of BMW Motorrad-TVS Motor Company alliance, is expected to hit the Indian market next fiscal.
While BMW’s product roll out plan in India is yet to be disclosed, BMW has started selling TVS Motor-built super bikes in other markets.
Production of the G 310R commenced at TVS Motor Company in India during 2016, said BMW’s latest annual report.
(The correspondent was in Hosur at the invitation of the company)
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