TVS to make Apache RTR in Indonesia

TVS Motor Company, the country's third largest maker of two wheelers, is planning to manufacture its latest premium segment bike, Apache RTR 160, in Indonesia. The company has set up a manufacturing unit in Indonesia for TVS Neo, a step-through bike which will be launched there during this month.

Speaking to Business Standard , K N Radhakrishnan, president, TVS Motor Company said, "To begin with we will export TVS Apache from India to Indonesia and depending on the market demand, we will start manufacturing the bike there. We have already test marketed the bike there and the initial response is very encouraging. The shipment will be done shortly."

TVS Apache RTR 160 is the latest bike developed by the in-house R&D wing of TVS. The bike combines TVS Racing's technology with R&D know-how. The bike has 15.2 brake horse power and delivers a top speed of 118 kph. In India, this new model has been priced at close to Rs 58,000.

The company backed by this new launch aims to sell a total of 1.7 million two-wheelers during this financial year, an increase of 13 per cent over the last year. Nearly 60 per cent of this would be from bikes, while the rest would be accounted by scooterettes and mopeds. The company, which is facing decline in sales for its executive segment bike, TVS Victor, is planning to launch another new bike in this segment in October.

The company plans to sell around 20,000 units of Apache RTR 160 a month in India. TVS is taking this step as it faces increasing competition from Hero Honda, Bajaj and Honda India in the premium segment. The market for this segment is 65,000 units a month, in which TVS holds 15 per cent share. TVS with this new launch is hoping to increase this share to 25 per cent by the end of this financial year.

Speaking on the Indonesian market, Radhakrishnan said TVS is aiming at grabbing a market share of 10-15 per cent over the next three years, which is the third largest market for two wheelers in the world. Presently, Yamaha, Honda and Suzuki control 95 per cent of the five million two-wheeler market in Indonesia.

He further added that TVS will increase its investment in Indonesia over the next couple of years. In the first phase of investment, TVS has invested $45 million in the country to set up a 3 lakh units per annum plant. The second phase will be a little higher than the first phase, he said. In the first year, TVS is looking at selling one lakh units of Neo in Indonesia.