TVS to phase out Centra in face of stiff competition

Unable to sustain competition, TVS Motor Company plans to phase out its Centra motorcycles. The 100 cc motorcycle segment is dominated by Bajaj CT 100 and CT 100 Deluxe.

Prasad Narasimhan, vice-president, marketing, TVS, said: " We will gradually phase out the Centra as we will not be able to emphasise the promotion of the brand." He added sales of the brand has been hovering around 10,000 per month and is expected to decline in future.

Senior TVS officials admitted that the brand was priced at a premium over its peers in the market. The Centra was launched at a price of Rs 38,000, later bringing the price down to Rs 34,900 without much benefit. Meanwhile, the Bajaj CT 100 is priced at Rs 30,000.

Industry estimates suggest TVS is the third largest two-wheeler manufacturer in the country with a market share of 13 per cent. Hero Honda is the largest player with a market share of more than 50 per cent. Bajaj Auto, the second largest, enjoys a 25 per cent share. TVS makes 65,000 motor cycles, 25,000 mopeds and 25,000 scooterettes in a month.

"We have plans to increase our market share to 17 per cent from the current 13 per cent in another couple of years. We can achieve this through new product launches and leveraging existing brands like Victor and Scooty by adding new variants," said Narasimhan.

Likewise, TVS on Friday launched its motorcycles Victor Edge and Star City and scooterette Scooty Pep Plus. Victor Edge is powered by the new 125 cc engine and Star City is a new 100 cc 4-stroke motorcycle.

Scooty Pep Plus will sport a 90 cc engine and is targeted at young girls. Victor Edge is priced at Rs 40,990 (ex factory Mumbai). Star City and Scooty Pep Plus at Rs 33,990 and Rs 32,000 respectively.

"TVS has plans to enter the growing scooterette market. Only 2-3 per cent of the two-wheeler market is controlled by scoterettes. So the potential is teriffic," said Narasimhan. The company also has plans to enter the scooter segment, it is learnt.