With its market position steadily slipping, TVS Motor Company hopes to stem the slide with a series of new products.
Last year, the company dropped to the fourth position (from third) in the two-wheeler market. Its revenues in 2012-13 dipped to Rs 7,065 crore (Rs 7,142 crore).
“New launches from Hero and Honda have eaten into our share. We hope to do better this year with more products,” said Venu Srinivasan, Chairman and Managing Director, addressing shareholders at the annual general meeting.
TVS Motor plans to launch six products by December 2014. This includes motorcycles in the executive (mid) segment, an upgraded Star City motorcycle, an upgraded Scooty and a new Wego scooter targeting the males.
The company is also betting on Phoenix, the mid-segment motorcycle launched late last year. Tvs has been selling 10,000 units a month of Phoenix since launch last December. (TVS has also started exporting the Phoenix.) The timely arrival of the monsoon and improved exports are causes for cheer, K.N. Radhakrishnan, CEO, told reporters.
Investment
TVS Motor plans to invest Rs 150-175 crore this year, mainly on new products (Rs 100 crore last year). Commenting on its Indonesian subsidiary, Srinivasan said TVS continues to struggle in Indonesia due to tough financial regulations and pricing pressure from competitors. He expects the subsidiary to break even by the next financial year.
Last year, the two-wheeler industry grew 2.4 per cent, while it had grown 15 per cent in 2011-12. This year, TVS expects the industry to decline 5 per cent. Srinivasan said there is tremendous pressure on buying power of consumers. “This year will be more challenging than last year, with mopeds remaining flat and motorcycles declining. Scooters may grow.”
At the AGM, the shareholders approved the appointment of Sudarshan Venu, son of Venu Srinivasan, as Director of the company.