Suzuki Corporation in a written statement to TVS-Suzuki has clarified that it had not entered into any contract with Bajaj Auto and has no intentions to do so in future, Venu Srinivasan, chairman and managing director of TVS-Suzuki said.
Talking to mediapersons after the annual general meeting, he said there was no change in the joint venture with Suzuki, adding that it continued to hold equity in TVS-Suzuki.
To a query, he said the company had outlined a capital expenditure of Rs 250 crore spread over the next three years equally. "The capital will be expended mainly to fine tune the manufacturing system and internal re-tooling," he added. Motor cycle sales are likely to increase to 4.4 lakh units in the current year from 3.8 lakh in the previous year.
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During the current fiscal, Srinivasan said the company would be able to maintain profit and profitability despite decreasing sales of its scooters and mopeds. The demand for mopeds had dropped in Tamil Nadu owing to drought, he said.
Asked about the two-stroke vehicles manufactured by the company, he said despite the shift in demand in urban market towards four-stroke vehicles, two-stroke vehicles were still preferred in rural areas because of the easiness in maintenance. At present, two-stroke vehicles are positioned between Rs 32,000 and Rs 35,000.
Commenting on the recently launched four-stroke vehicle, Victor, he said the company had planned to gradually increase its production to 20,000 units per month over the next eight months.