TVS begins operations in Indonesia

Bangalore: TVS Motor Company has begun operations in Indonesia with the inauguration of its two-wheeler manufacturing plant by Indonesian President Susilo Bambang Yudhoyono at Surya Cipta Estate in Karawang.

The company has introduced TVS Neo, a step-through bike in the Indonesian market. The factory, built over 20 hectares, has an installed capacity of 3 lakh units per annum.

TVS has invested $43 million and aims to scale it up to $100 million in the next three years, a company press release said.

Venu Srinivasan, chairman, PT TVS Motor Company Indonesia, said the company would make further investments in Indonesia to increase the local value addition to 80 per cent from the present 40 per cent.

He said TVS was a long distance runner in Indonesia.

TVS aims to grab a market share of 10-15 per cent over the next three years, in what is the third largest market for two-wheelers in the world after China and India.