TVS Motor Company Chief Venu Srinivasan, on Monday, said that its play in the more-advanced Indonesian two-wheeler market against mighty Japanese brands had helped the Chennai-based two-wheeler firm achieve remarkable improvements in its products and gains in the domestic market.
“Today, we are seeing excellent results in India. It is because Indonesia is the outpost from which we are able to gather world trends - be it in technology, finish and aspirational styling. In two-wheelers, Indonesia is three years ahead of India. Significant improvements in quality, style and performance in our vehicles here have come from our presence in Indonesia,” said the Chairman and Managing Director of the company while addressing the 22nd annual general meeting of the company.
Indonesia is world’s third largest two-wheeler market after China and India with annual sales of 7 million units. It is primarily a scooter/step-through market, and has been dominated by the Japanese brands such as Honda and Yamaha with over 90 per cent share by them. TVS, which entered Indonesia in 2006-07, continues to see its subsidiary PT.TVS Motor Company Indonesia incurring losses. But it hopes that the recent new launches are expected to help improve margins and overall performance. “It is a long-term strategic investment, and the subsidiary will achieve cash break-even in the next 12-18 months,” said Mr. Srinivasan.
Its overall two-wheeler market share in India increased to 12.6 per cent in the first quarter of this fiscal from 12 per cent in the year ago period. Market share in scooters increased to 15 per cent from 12.5 per cent and in bikes to 5.9 per cent from 5.6 per cent. For 2014-15, it is aiming for a 14 per cent share, up from 12 per cent in the previous year, in overall two-wheeler market.
Last month, the company became the third largest two-wheeler firm (after Hero and Honda) by clocking more volumes (overall) than Bajaj Auto.
However, TVS’ June volumes of 1.69 lakh units include bikes, scooters and mopeds, while Bajaj’s sales of 1.48 lakh units comprise only bikes, as it is not present in scooters and mopeds. Mr. Srinivasan said the company would look to regain its third position in the two-wheeler market, backed by new launches.
The company intends to launch scooter Zest and bikes Victor and Apache before the end of this fiscal.
K. N. Radhakrishnan, President and CEO of TVS Motor Company, said the company would grow better than the industry this fiscal.
He added that company was confident of boosting its market share in bikes from single to double-digit by strengthening its positions in various categories.
