The Hindu : Business : TVS Motors eyeing export market

Online edition of India's National Newspaper
Thursday, Jul 29, 2004

Business

Business

TVS Motors eyeing export market

By Our Special Correspondent

CHENNAI, JULY 28. Even as it is trying hard to regain the last ground in the domestic market, TVS Motors (TVS-M) is pushing its vehicles on the international roads in a big way. In the current year the company is hoping to drive 50,000 two-wheelers on the global roads. Next year, it has drawn up an export target of one lakh vehicles. Last year it shipped out 25,000 vehicles.

Addressing a press conference here today, Venu Srinivasan, Chairman and Managing Director, said TVS-M had exported 12,188 vehicles in the first quarter of the current year ended June 2004 as against 4,600 in the same period last year. The company, he said, was able to look at export market seriously ever since its disengagement with Suzuki of Japan, the erstwhile joint venture, couple of years ago. Reiterating that TVS-M was looking closely at ASEAN countries for a production base, the Chairman disclosed that the company was in parleys with a few in Iran for a possible licensing arrangement.

Mr.Venu Srinivasan said loss of sales in two-stroke vehicles continued to pull down the volume. So much so, sales had dropped by eight percentage points in the first quarter, profit before tax by 16 percentage points and profit after tax by similar percentage points. Nevertheless, he said sales of four-stroke vehicles were improving in the current quarter. The industry had reported a 12 per cent growth in the just-ended quarter but the company had recorded a negative seven per cent growth. This was largely attributed to a 22 per cent decline in motorcycle sales. The scooty segment had, however, grown by 42 per cent and mopeds by 9.3 per cent. The good response to Victor GLX, the good tidings on the Centra front and the impending launch of four-stroke entry-level Max, Mr. Srinivasan hoped, would augur well for the company to regain ground in the remaining months of the current financial year.

Drop in profit

TVS-M reported sales of Rs.611.06 crores for the quarter ended June 2004, down from Rs.662.50 crores in the same period last year. The profit before tax was placed at Rs.42.01crores (Rs.50.04crores) and profit after tax at Rs.27.18crores (Rs.32.08crores). The current quarter results reflected that of Lakshmi Auto Components, which had been merged with TVS-M.

Printer friendly page
Send this article to Friends by E-Mail

Business