| "The three-wheeler market has grown at an 18 per cent CAGR (compounded annual growth rate) over the last five years, faster than that of two-wheelers and commercial vehicles. As the economy grows, the public transport system will not be able to cope up with the demand. A large section of the public will turn to autorickshaws for transport," said H S Goindi, senior vice-president, three-wheeler, TVS. |
| In April-July this year, TVS witnessed a drop of nearly 16 per cent in its two-wheeler sales. The company enters the three-wheeler segment armed with three two-stroke models of 200cc, each running on petrol, LPG and CNG. The diesel version will come in 18 months. The company also intends to launch four-stroke three-wheelers in six months. |
| The products unveiled today will be launched in a phased manner between October and November this year. The prices will be announced at the time of the launch. |
| These will be manufactured at the company's greenfield plant in Hosur and will entail an investment of Rs 125 crore. The installed capacity will be 100,000 a year. |
| India's three-wheeler output in the last financial year was 556,000. The market leader was Bajaj Auto, accounting for a 57 per cent share. But during April-July this year, Piaggio cornered a 41 per cent share, against 42 per cent for Bajaj. |
| Bajaj Auto's products are priced in the range of Rs 56,000-75,000 (ex-factory). TVS is likely to price its vehicles a bit lower. |
| Goindi said TVS aimed to capture at least 30 per cent of the three-wheeler market in the next three years. The petrol version of the three-wheeler market is expected to grow at 7-8 per cent and the diesel version at 10-12 per cent. |
| He said the company would also come out with a cargo version of the three-wheeler. The CNG and LPG markets are rapidly expanding as more state governments encourage cleaner fuels. |
| The company also aims to export three-wheelers and is looking to assemble them at its Indonesia plant in a year. |
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