TVS to drive into Asean marts with step-thrus

TVS Motor Company has decided to launch step-thru bikes as its first product in Indonesia and other Asean countries such as Malaysia, Philippines, Singapore, Thailand and Vietnam.

Step-thrus is a range placed between a motorcycle and moped in terms of looks and design. Bajaj M80 is an example of a step-through bike. TVS is setting up a plant in Indonesia for manufacturing bikes.

The plant will have a capacity of manufacturing 1,20,000 bikes in a year, and is expected to start production by the last quarter of the financial year 2006-07.

The Asean region is really a big market for step-through bikes, said a TVS official. "After launching our step-thru bikes in Indonesia, we plan to export them to other neighbouring Asean countries like Malaysia, and Thailand.

Asean is a unique market in the world, where step-through sells more than motorcycles," said the official. The step-thru market was developed in this region by 70-100cc Hondas in the sixties and the seventies and the trend still continues.

However, Hero Honda's effort to build a 100 cc step-through in India started and ended with the now discontinued Street model.

The Asean two-wheelers market (excluding China) is estimated at 4-5 million units annually. Of this, the step-through bikes will have a market close to 1 million units.

The design work of the new step-through will be done by TVS' R&D. However, the manufacture and exports will be undertaken by the company's Indonesian arm.

Currently, there are no plans to release the step-through in the India. On the domestic front, TVS is bullish on the market. It has announced its plans of selling 2,50,000 bikes during the three-month period of August, September and October 2005.