The Hindu : Business : TVS Motor to launch new bike

Online edition of India's National Newspaper
Friday, Sep 03, 2004

Business

Business

TVS Motor to launch new bike

NEW DELHI, SEPT. 2. TVS Motor Company will launch a 100cc entry level motorcycle TVS Star by the end of this month and invest Rs. 200 crores for product development this fiscal. The company is also planning to set up a manufacturing subsidiary in one of the South Asian countries. "TVS Star is ready for the launch. The motorcycle will hit the roads by month-end. We are also going to pump in Rs. 200 crores for new products," TVS Motor Chairman, Venu Srinivasan, said.

The new motorcycle will be manufactured at the company's Hosur (Tamil Nadu) plant. The company will also firm up its plan to establish a manufacturing subsidiary in either Thailand, Indonesia or Vietnam. "We will take a proposal of setting up the subsidiary to the board soon," he said.

With the launch of the new motorcycle the company aims to have 33 per cent market share in the entry level motorcycle segment. The company is launching TVS Star after phasing out its two-stroke entry level Max range of motorcycles.

The company also aims to sell 1.4 million two wheelers this year. At present, the company has a production capacity of 110,000-120,000 units and it targets to sell 80,000 motorcycles by October. The company had launched TVS Scooty Pep and 125cc Victor motorcycle recently.

PTI

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