TVS Motor Company has earmarked Rs 450 crore capex for the current fiscal for various activities including expansion of production capacity to around 45 lakh units per annum.
The two-wheeler major also aims to introduce various refreshes of its existing product portfolio in the period leading up to the festive season.
"We have earmarked a capex of Rs 450 crore for the current fiscal. It will mainly go into increase in capacity production and R&D activities," TVS Motors CFO and Executive Vice-President Finance S G Murali told PTI.
The company aims to increase annual production capacity across its three manufacturing plants in the country from the present around 40 lakh units to 45 lakh units during the current fiscal, he added.
TVS Motor Company has manufacturing plants at Mysore in Karnataka, Hosur in Tamil Nadu and Nalagarh in Himachal Pradesh.
The Mysore plant currently has an installed capacity of 12 lakh units per annum, Hosur can roll out 21 lakh units while Nalagarh has an installed capacity of 6 lakh units per annum.
When asked about new launches, Murali said the company has one product in the pipeline, without naming it.
The company, which has risen to take second spot in the scooter segment in the country, expects robust sales to continue going ahead on the back of factors like good monsoon across various parts of the country.
"Though rains have been deficient in parts of Tamil Nadu, Kerala and Karnataka, other parts of the country have seen good monsoon this year. It will lead to revival of sales in rural markets," Murali said.
In the April-July period, TVS Motor Company sold a total of 8,93,963 two-wheelers in the domestic market, up 9.26 per cent over the same period of the previous fiscal.
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