TVS lines up Rs 175-cr capex for launches

TVS Motor has planned a capital expenditure of Rs 175 crore for 2013-14, up from Rs 100 crore the previous year. The investment will support two launches. Analysts feels the launches are "extremely important" for the company to gain market share, which was slipped in the recent months.

The company will introduce a motorcycle and a scooter during the course of the current financial year. In addition, the company has planned upgrades across the product portfolio, and will also launch a diesel three-wheeler during the year.

The official said the first half of the year seemed tough, and the second half would see some positive growth.

With a complete portfolio, the company expects to improve its performance the next financial year.

It might be noted the total April sales dropped five per cent to 165,215 units, from 174,455 in April 2012.

Two-wheeler sales were 160,502 units against 171,551 in April 2012, a drop of six per cent. Motorcycles remained flat at 67,849 units in April 2013 against 67,966 in April 2012. Scooters registered sales of 29,692 units in April 2013 against 35,833 in the same month of the previous year.

The company has lost the third slot in the two-wheeler market to its competitor.

The 125-cc motorcycle Phoenix has not seen volumes improving substantially. Similarly, in the scooter segment, the launch would help the company gain some market share.