TVS keeps Flame debut low key

Even as a court case rages over the alleged intellectual property infringement, Chennai-based TVS Motor today launched its new 125-cc motorcycle, Flame, which rival Bajaj Auto says is based on its patented twin spark plug technology.

At a subdued event in Chennai, the company's Chairman and Managing Director Venu Srinivasan said no law had been infringed by the launch of Flame, which carries an enticing price tag of Rs 45,000 (ex-showroom Chennai) .

In September, India's second largest two-wheeler company Bajaj Auto accused TVS Motor of patent violation over the latter's use of twin spark plug in a small motorcycle engine. TVS Motor's Flame, according to Bajaj Auto, uses this technology.

While Bajaj Auto has claimed to hold a valid patent on this technology, TVS Motor has contended that the technology is not patentable and in return filed a defamation case against Bajaj Auto to the tune of Rs 250 crore in the Bombay High Court.

Srinivasan said Flame would be launched at national-level in January, during the Auto Expo, scheduled in the second week of the month. Interestingly, the patent revocation case filed by TVS in Chennai is coming up for hearing on January 2008, just a week before the proposed national launch of Flame.

Flame is expected to strengthen TVS Motors' presence in the executive segment, which forms over 50 per cent of India's eight million units motorcycle market.

After the national launch, TVS Motors hopes to sell around 20,000 units of Flame every month. Bajaj's competing product in this segment launched earlier this year, Bajaj XCD, is currently managing retail volume of 40,000 units a month.

Srinivasan said a new 100 cc Star Sport was also in the offing to launch in January 2008. The new Star Sport is expected to give an incremental volume of 10,000 units a month.

Srinivasan said that his company will be making its foray into the electric scooter market in January in Gujarat. With a market of 15,000 units a months, this western state is the largest market for scooters powered by electricity charged batteries.

The ongoing feud between Bajaj Auto and TVS Motor comes at a time when the two-wheeler industry has been witnessing erosion in sales, triggered by the prevailing high interest costs in the two-wheeler finance trade.

According to SIAM data during the first six months of this financial year, Bajaj Auto's two-wheeler sales dropped by 24 per cent to 7.97 lakh units, while TVS Motors' sales during this period dropped by 21 per cent to 5.81 lakh units.

However, market leader Hero Honda has managed to buck this trend and reported a fall of less than 1 per cent, with the first six months sales at 15.17 lakh units.

READY TO ROLL

Flame has a price tag of Rs 45,000 (ex-showroom Chennai)

TVS hopes to sell 20,000 units monthly

Schedules 100 cc Star Sport launch in January

To foray into electric scooter market in Gujarat