TVS to launch new product every three months
Aiming to increase its market share by three percent, two and three-wheeler manufacturer TVS Motor Company Friday said it would launch a new product every three months.
Chennai: Aiming to increase its market share by three percent, two and three-wheeler manufacturer TVS Motor Company Friday said it would launch a new product every three months.
The first in this initiative is the TVS Phoenix 125cc motorcycle priced at Rs 53,000 (ex-showroom Chennai), TVS Motor Company Chairman, Venu Srinivasan said, after unveiling the bike here.
"We were completely absent in the Rs 50,000 to Rs 60,000 motorcycles which is the large segment (in the motorcycle industry). We are actually making our presence felt after TVS Victor (110cc motorcycle) left the market with launch of Phoenix," Srinivasan told reporters here.
"From now on there will be five product launches by now and end of 2013 calendar year", he said.
Elaborating, he said TVS Motor Company would relaunch its highly successful TVS Victor motorcycle in August next and two more scooterettes in next 12 months.
"Second motorcycle will be Victor from nine months from now on. By August next year, we will launch it and production will begin in June 2013. It is very important product to have the Phoenix Friday and nine months from now, we will have the Victor.
"So that we will have a complete stable. This alone will increase our market share by more than three percent of the two wheeler industry", Srinivasan said.
The company had spent about Rs 50 crore on the product development of Phoenix priced at Rs 51,000 (ex-showroom Chennai) for basic model while the disc variant would cost Rs 2,000 more.
To a query, Venu Srinivasan said the company would also consider exporting of Phoenix to 50 countries with the same features and after making some modifications they would sell it to another 50 overseas markets.
The company would manufacture the new motorcycle at their Hosur facility, he said and added that they were still selling first 125cc motorcycle TVS Flame in "small quantities".
He said the company hopes to sell about 20,000 units of Phoenix during the coming festive season.
In the next three years TVS Motor Company would have 40 percent reduction in parts production across all its products. "This will improve quality and reduce cost", Srinivasan said.
On reports of TVS holding talks with German auto-maker BMW's motorcycle division, BMW Motorrad, for possible tie-up, Srinivasan said his company was holding talks. "We are talking with them. We will continue to talk with them", he said.
TVS Motor Company had said earlier that they were in talks but nothing had been "firmed up as yet."
Asked whether the company was mulling to launch motorcycle in the premium the 200 and 250cc segments, he said, "It is small segment.Once you go beyond 150-180cc (categories) the numbers are much, much small. Our focus is below that".