TVS Motor which lost its third position to Honda Motorcycle,has said that it will aim at retaining its position in sub 100cc ungeared scooter segment through new launches, in executive segment and scooter segment along with series of brand activities. The company also said its all new Apache is expected to help the company grow in the premium segment.
“We have established brands in economy and premium segments and with two new brands launches in the executive segment in the coming year, the company is expected to leverage all customer segments in motorcycle market. An all new Apache is expected to help company grow in the premium segment,” according to company's annual report 2011-12.
Company's overall domestic two wheeler sales growth was lower at five per cent in 2011-12 mainly due to its absence in executive segment of motor cycles.
The company further said it would aim at retaining its leadership position in sub 100cc ungeared scooter segment through brand activities.
Company's R&D has designed, developed and launched new variants of TVS StaR City, TVS Pep+ and TVS Streak. R&D has designed and developed new variant for TVS Apache RTR 160cc and 180cc.
It may be noted, Japanese automajor Honda Motorcycle overtook TVS Motor to become the third-largest two-wheeler firm in India, pushing TVS Motor to the fourth position.
“The success of planned launches in the motorcycle category is important to maintain the momentum for the company. Along with new product development and other technology-incubation, the Company is also working on development of fuel-efficient technologies and CO2 reduction” said TVS Motor.
The new launches including the Phoenix executive-commuter which is expected to be launched during the second quarter of the current year and a new scooter later in the year, to complete its product portfolio which will increase the company’s sales volume,” said TVS Motor in a statement.
Yaresh Kothari of Angel Broking said "we believe that the upcoming launches, new motorcycle in the executive segment and new scooter will be the key for the company to regain volume momentum going ahead. The success of these new models is key for the company to register volume growth going ahead”.
The new launches will enable TVS Motor to ramp up its monthly run rate of two-wheelers and post annual volumes of 2.27 million and 2.42 million units in fiscal 2013 and 2014 E, respectively, from 2.20 million units in FY2012, he said.
On the outlook, TVS Motor said the uncertainty witnessed in 2011-12 is likely to continue in 2012-13.
“Global economy shows no signs of recovery and it is expected to be more uncertain in 2012-13. This may result in volatile crude and commodity prices and fluctuations in foreign exchange rates. In domestic economy, continued inflationary pressures, lower private consumption and high fiscal deficit are likely to result in lower GDP growth compared to previous year”.
The two wheeler industry is also consequently expected to grow at a lower rate of 10 per cent compared to 16 per cent growth recorded in the previous year, according to TVS Motor.
