TVS Motors plans Rs 500-crore manufacturing facility in Mysore

Pradeep Rane
20 October 2003

This plant is expected to roll out new products from January 2005 and will contribute significantly to TVS profitability. Its entry into the three-wheeler segment will support the volume growth as the segment offers a Rs 1,700-crore growth opportunity. Besides this, the company also has plans to tap export markets.

Also, TVS plans to introduce a host of new products in the coming months in the two-wheeler segment where it is a dominant player. Its new product is the Centra, a 100cc motorcycle to be launched in the top-end of the entry-level segment.

TVS Motor has established itself as a strong player in all the three segments of two wheelers — motorcycles, scooters and mopeds — where it has an overall market share of 22 per cent.

In the last three years, after the exit of Suzuki, the company has successfully transformed itself from a two-stroke to a four-stroke motorcycle manufacturer. The company has spent aggressively on building a national brand.

TVS has successfully launched a string of successful products including the Victor, Scooty Pep, and the Fiero F2 in the last two years since the exit of Suzuki. In fact, the Victor — its motorcycle offering in the premium segment with many firsts attached to it like vibration dumper and adjustable shock absorbers — has become the second-largest selling product in its category within two years of launch.

It has transformed itself from a two-stroke to a four-stroke manufacturer over the last three years. The company is planning a spate of other new product introductions too, wherein lead-time will be reduced considerably.