PT TVS Motor Company, the wholly-owned subsidiary of TVS Group in Indonesia, commenced its operations today with the inauguration of its two-wheeler manufacturing plant by Indonesian President Susilo Bambang Yudhoyono at Surya Cipta Estate in Karawang this afternoon.The company has also simultaneously introduced TVS Neo, a step-through bike in the market. The factory, built over 20 hectares, has an installed capacity of 3 lakh units per annum. TVS has invested $43 million and aims to scale it up to $100 million in the next three years, a company press release said.Venu Srinivasan, chairman, PT TVS Motor Company Indonesia, said: "In order to increase the local value addition to 80% from the present 40%, we will make further investments. We are a long distance runner in Indonesia. The first product from the factory introduced here, TVS Neo, is a new generation of bebek motorcycles."The company spent three years in R&D before introducing the bike, and in future, there will be more models from TVS for the market, said Nihal Kaviratne, CBE, president commissioner, PT TVS Motor Company Indonesia.TVS aims to grab a market share of 10-15% over the next three years, in what is the third largest market for two-wheelers in the world after China and India. Presently, Yamaha, Honda and Suzuki control 95 per cent of the five million two-wheeler market in Indonesia.The company also aims to introduce power motorcycles like TVS Apache in the coming days. In the first year, TVS is looking to sell one-lakh Neo units.
