The Hindu : Business : TVS to launch modified Flame bike

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Wednesday, Feb 27, 2008
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Business

TVS to launch modified Flame bike

Special Correspondent

Company switches to new technology with single spark plug

AVL of Austria to provide technology
Team to monitor patent-related issues

CHENNAI: TVS Motor Company will now launch the controversy-hit 125cc motorcycle Flame with single-spark plug ignition technology, as against the originally proposed twin-spark plug ignition technology.

The move comes in the wake of the Madras High Court restraining the company from making and marketing Flame motorcycles using twin-spark plug ignition technology.

The Madras High Court Order came after hearings in a civil case filed by Bajaj Auto.

Flame will use a new and unique engine, specially developed, patented and licensed to TVS Motor by AVL of Austria, a world leader in internal combustion engine technology.

This engine features a three-valve dual induction system, using the proven single-spark plug ignition.

Venu Srinivasan, Chairman, said Flame, with single-spark plug ignition, would be launched in March. He expected TVS Motor to distribute 20,000 Flame vehicles in March.

The move to launch Flame with single-spark plug ignition “will require some changes in the tooling,” he said.

Changeover

The change-over would involve not much additional cost, he said. The Chairman claimed that the High Court Order restricted TVS Motor vis-À-vis the use of twin-spark plug ignition technology only. The Order was not an injunction against the launch of Flame per se, he pointed out.

Mr. Srinivasan said there would be around 5,100 Flame vehicles (4,500 with the company and the rest with the dealers) with twin-spark plug ignition technology.

These would now be re-configured with single-spark plug ignition technology, he added.

Pricing

Mr. Srinivasan admitted that the legal wrangle did have an opportunity cost for TVS Motor as it lost three months in crucial time. He estimated the production loss to be Rs. 40 crore a month.

“This is not insignificant,” he added.

On the pricing of the Flame in the changed context, he said it would be around Rs. 46,000 ex-showroom.

The company, he said, was hoping to get the approval of ARA I (Automotive Research Association of India) for its Flame with single-plug ignition technology anytime now. In the wake of the current controversy, TVS Motor, he said, had set up a small team to closely monitor all patent-related issues, not just to defend the company’s position but also to ensure that no violation took place.

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