The Telegraph
Since 1st March, 1999
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TVS Motors gears up for overseas markets

Mumbai, Nov. 20: After conquering the roads with the TVS Victor, TVS Motor Company now wants to win the world.

Not content with being perceived as a regional player, the company has drafted an ambitious plan that will make it count among the world’s top five two-wheeler makers, that includes a foray into the booming Chinese market apart from Indonesia and Vietnam.

Addressing a select news gathering today, TVS Motor Company managing director Venu Srinivasan said while the Chinese foray will only be in 2007-08, both Indonesia and Vietnam are being seen as holding tremendous potential. He said the company is looking to assemble the Victor or Fiero in the two countries. Another option being weighed is entering into a tieup with one of the local players there.

Srinivasan said customer preferences in these markets are similar to those in India and they are projected to be the fastest growing and largest markets of the world.

He said by 2007, the company expects the Indian two-wheeler market to touch 10 million while for the current year, the company is looking at volumes of over five million. He added that the company planned to launch a new model in the motorcycle segment next year, which will be accompanied by two variants of the Victor and an upgrade of the Fiero.

TVS Motors posted a sales turnover of Rs 705 crore for the second quarter of this year, a 64 per cent growth over the second quarter last year. Net profit during this period grew 197 per cent to Rs 30.85 crore. Overall sales stood at 2.92 lakh units, with motorcycles at 1.82 lakh units (up 112 per cent) and scooterettes at 45,987 units largely contributing to growth.

Following the encouraging response to the Victor—that sold 50,000 units last month—the company points out that the future is bright with the right product mix, backed by a strong R&D base, a good manufacturing set-up and an aggressive marketing and sales force. The company is doubling production capacity to bring down the waiting period for the Victor.

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