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TVS Motor hopes to sell 1.4mn units in FY05

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Our Corporate Bureau Chennai
TVS Motor Company is looking at sales of 1.4 million two wheelers in the next financial year.
 
"We expect to sell 1 million units of motorcycles, while total two-wheelers sales will be in the region of 1.4 million units in the next fiscal. This will be a very significant achievement for the company when we reach the milestone," Venu Srinivasan, chairman and managing director, said at the launch of the company's new 100cc bike 'TVS Centra' on Monday.
 
The Centra features an industry first variable timing intelligent engine technology in two wheelers in the country.
 
The new executive segment 100 cc Centra, according to company officials, is designed to deliver better fuel efficiency and torque delivery based on three fundamental actions - variable ignition timing enabling superior combustion of fuel, friction reduction and fuel wastage reduction.
 
The company has also priced the Centra aggressively at Rs 36,990 ex-showroom and it will compete in the most crowded executive segment of the market in the country, estimated around 3 million units a year.
 
The launch comes at a time when in the recent past TVS has experienced negative growth in motorcycle sales, while competitors such as Hero Honda and Bajaj Auto have notched up positive growth.
 
"We expect to sell about 300,000 units of Centra in the next financial year," Srinivasan said.
 
Marketing officials at TVS Motor claim that the 7.5 bhp Centra is built to give 10 per cent more mileage than any other motorcycle in the market today.
 
Meanwhile, TVS-Electronics Limited, one of the largest computer peripheral manufacturing company in India, has entered into pact with rediff.com for online retailing of its products on the online news and entertainment service portal.
 
The products that will be sold online on rediff.com include TVS Ribbon Cassettes, TVS Ink bank and at a later stage, TVS service products.
 
TVS-Electronics aims at targeting the internet savvy consumers and provide them the convenience of shopping for the products online.
 
According to a press release, TVS-E has been consistently selling its products largely through its channel partners and national distributors such as Tech Pacific, Redington and Ingram Micro, but keeping in mind the pace of the PC and internet penetration, TVS-E has decided to establish its presence online as well.
 
As part of such an endeavor, TVS-E has tied up with Rediff.com for regular campaigns to start selling some of its products online.
 
According to S. Narendran, head - marketing, TVS-E, "The TVS-E online retailing site will go live this week, where we expect close to 100 orders a week. This will mark the beginning new era of marketing strategies for TVS-E in 2004, where we will be moving to the next stage of development and growth in the company. TVS-E plans to grow into a stronger company with national reach and acceptance, by building relationships with channel partners and customers."
 
TVS Electronics is bullish and aggressive on the channel front to increase its business from an existing Rs 228 crore to reach a revenue of Rs 500 crore by 2006.

 
 

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First Published: Jan 07 2004 | 12:00 AM IST

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