TVS launches Star in MP, Chhattisgarh

The 4-stroke bike to cost Rs 31,000

In keeping with its policy to target the entry-level bike market, two-wheeler major TVS Motors Ltd has launched its new bike, 'Star', in Madhya Pradesh and Chhattisgarh.

The 4-stroke, 100-cc bike is priced at Rs 30,999 (ex-showroom price in Bhopal). It features a reinforced frame, wider tyres, a heavy-duty chain and powerful shock absorbers.

The bike's launch is expected to arrest the fall in demand for two-stroke entry-level motorcycles. "We should be able to sell at least 3,000 "Stars" per month in MP and Chhattisgarh," said R Chandramauli, senior vice-president (sales and service).

The company hopes to sell 20,000 units in MP during the rest of the financial year (October 2004-March 2005).

In a major shift in marketing strategy, TVS will skip a media campaign initially and instead organise road shows. The company has designed 40 mobile vans to cover rural and semi-urban areas.

"We will touch 3,000 people every day through the roadshows. We will also go in for graffiti," K Ramakrishnan, brand manager, told Business Standard. The new media strategy will cost barely Rs 1,000 per day.

The company has no immediate plans to rope in any celebrity as brand ambassador.

"Madhya Pradesh is very important for us since we already have a vibrant presence in the market through our two-stroke bike Max. We will focus on MP to target the 35 per cent figure in the entry-level bike segment," said Chandramauli.

The company has no plans to phase out Max. "Demand from a market like MP for Max will never end," Chandramauli said.

The company has 30 dealers and 150 sales and service points in MP. "We will add 50 more sales and service points to widen our reach," he added.

TVS Motor's two-wheeler sales in September this year stood at 104,837 units, compared to 105,989 units in September last year. However, this September has recorded a growth of 17 per cent, compared to August this year.

Motorcycle sales in September this year stood at 59,172, compared to 64,958 units in September last year. However, motorcycle sales in September 2004 grew 21 per cent over August 2004.