TVS Motor relaunches Flame

In the wake of Madras High Court restraining TVS Motor Company, India's third-largest two-wheeler maker, from making and selling its 125-cc motorbike Flame using the controversial twin-spark plug system, the company today relaunched Flame with a single-spark plug ignition system.
 
A legal tussle is currently on between TVS Motor and Pune-based Bajaj Auto over alleged patent infringement by the former in Flame. The battle between Bajaj Auto and TVS Motor started in September 2007 over a technology called digital twin spark ignition (DTSi). Bajaj Auto had accused Chennai-based TVS of illegally replicating its patented DTSi technology in TVS Flame. TVS responded that Flame was fitted with a three-valve engine based on CCVTi (Controlled Combustion Variable Timing Intelligent) technology, which is different from the technology used by Bajaj Auto.

The issue subsequently went to court. The Madras High Court, on February 19,  passed an interim order barring manufacture and sale of TVS Flame using the twin-spark plug ignition technology. TVS Motor has filed an appeal against the verdict.

The high court ruling came as a major setback for TVS Motor, which has been reeling under falling sales. The company was hoping that Flame, launched on December 13, 2007, would boost sales and strengthen its presence in the executive segment, which constitutes over 50% of the motorcycle market. The revenue loss for the company on account of this is estimated to be Rs 100 crore for the current quarter, according to Venu Srinivasan, chairman and managing director, TVS Motor.

Addressing reporters at the relaunch of Flame, Srinivasan said the new Flame is powered by three-valve CCVTi engine technology developed and patented by Austria-based AVL, which has licensed the technology to TVS in India. "Nothing has changed in this vehicle except the single-spark plug," he added.

The modified Flame carries a price tag of Rs 46,000 (ex-showroom). The company expects to sell about 15,000 units this month and aims to take it to 25,000 units a month by October. The 600-odd units of Flame with dealers will be reconfigured with the single-spark plug ignition, Srinivasan added.