The Hindu : TVS Motor rolls out new models

Online edition of India's National Newspaper
Saturday, Feb 08, 2003

Business

Business

TVS Motor rolls out new models

By P. Narasimhan

MYSORE FEB. 7. TVS Motor Company is planning to invest Rs. 200 crores a year for three years beginning next fiscal and introduce six new models next year.

The company on Thursday rolled out its new models — TVS Scooty Pep and TVS Fiero F2 — from its Mysore plant.

Addressing visiting journalists at the plant site here, after launching the new products, Venu Srinivasan, Chairman and Managing Director, said "We have done the highest volume and highest profit ever" and added "from now on we will be rolling out new models every two or three months". The slew of products would include a brand new motorcycle (not yet named) by May/June, two variants of Victor by April/May, a complete relaunch of Victor by September and a new variant of Fiero by September.

Rs. 600 cr. investment planned

The investments of Rs. 600 crores in the next three years, mainly from internal accruals, would be utilised for turning out new products, expanding capacity and overseas investments, he added.

Mr. Srinivasan said the new Fiero F2 (150cc) was the replacement of the existing one while the Scotty Pep was an add-on model. He said despite power pack and fuel economy offered by the earlier version of Fiero, it did not pick up in the market due to lack of styling. So the objective of launching Fiero F2 was to offer aggressive styling. In addition, fuel economy had also been improved by 5-7 per cent, he said.

The CMD said the existing model of TVS Scooty was 60cc while the Scooty Pep would be a four stroke, 75cc, scooterette, designed to set new standards in convenience and styling, which was developed in-house at a cost of Rs. 70 crores.

To a question, Mr. Srinivasan said the target for Fierro F2 sales had been fixed at 7,000-10,000 units a month and Scooty Pep at 10,000-12,000 units a month.

This year the company had fixed the total sales target at 1.15-1.20 million units and this would be increased to 1.35 to 1.40 million units by next year. The company projected a sales of Rs. 2,900 crores for 2002-03 and Rs. 3,400-3,500 crores for 2003-04.

Regarding the company's overseas venture, the CMD said that by September this year, a decision would be taken.

Admitting that Victor had certainly given a big boost to the growth, Mr. Srinivasan said the company produced 40,000 units last month and this would be increased to 50,000 units by June. On the export front, he said, the company had started exporting 500 units a month to Bangaladesh and Sri Lanka. The company was also aiming to double the exports every year.

The demand for mopeds had dropped due to drought and it would get a boost if the economy improves. Tamil Nadu accounts for 40 per cent of total moped sales of which TVS moped account for 60 per cent, he said.

Explaining the features of the new models, C. P. Raman, President, TVS Motor, said Fiero F2 was designed to set new standards in style and performance and keeping in mind the changing customer needs and times. Fiero F2, with aerodynamic international styling, would give a mileage of 55-60 km per litre and was priced at Rs. 45,000-47,000.

Scooty Pep, a state-of-the-art scooterette, was today among the most stylish scooterettes in its category gave around 55 km a litre on road. Targeted at the youth segment, Scooty Pep was priced at Rs. 29,600.

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