The series of launches will give the two-wheeler major an incremental 40,000-unit sales every month from October ’08, taking the total monthly sales to 90,000 units. The company’s concerted efforts to cut costs will give it higher profits from the second half of this year. Addressing mediapersons, TVS Motor CMD Venu Srinivasan exuded confidence in putting India’s third largest two-wheeler maker back on track.
“By April next year, we would have launched 11 new products, including seven in India and two in Indonesia, besides two-stroke and four-stroke three-wheelers in the Indian market,” Mr Srinivasan told the gathering here on Tuesday.
“The investments we made in quality and technology will be put on actual display from now on,” he added.
He said the company is now working on several fronts to cut costs and improve efficiency further. “When raw material costs go up, we have to resort to increase in prices to ease the pressure on us. However, the intense competition in the market forced us to reduce the prices by 5-6%, resulting in dwindling profits,” Mr Srinivasan said.
While sales of Victor, its mainstay in the executive segment, started declining since late 2004, the two-stroke motorcycle sales too suddenly declined, even as its mid-segment Centra did not take off as expected. “Somewhere in 2005, we were in a situation where we had no motorcycle to sell (in volumes),” Mr Srinivasan said.
That’s when the company went in top gear, grouped about 140 engineers and prepared to develop globally competitive designs and products. The team’s entire focus, initially, was on Star and over the last nine months, it made a name for itself.
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