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21
March 2017
Two
and three wheeler major TVS Motor Company Ltd's agreement to make high powered
motorcycles for Germany's BMW has come to fruition with the Indian company
starting to ship out BMW branded 310cc bikes, said a senior company official.
He
also said TVS Motor Company would invest around Rs 350 crore next fiscal
towards expansion of capacity, launch one new model each of scooter and
motorcycle are some of the targets for 2017-18. The Total Investment & Insurance Solutions
In
2013, TVS Motor and BMW signed an agreement to jointly develop motorcycles in
the 250-500cc range to be sold through their respective distribution network.
The
310cc motorcycle and its engine were developed jointly with the German
automobile giant BMW on a common platform/architecture. The Total Investment & Insurance Solutions
Not
revealing any numbers about the number of units made or shipped out for BMW
President and CEO K.N. Radhakrishnan said it is up to the German auto major to
talk about the numbers.
Speaking
to a group of journalists who visited the company's Hosur plant on Tuesday,
Radhakrishnan said TVS Motor is yet to decide on the distribution
model-separate network or sold through existing dealership - for its own 310cc
bike Akula that would be launched next fiscal. The Total Investment & Insurance Solutions
Radhakrishnan
said the company has budgeted a capital expenditure of around Rs 350 crore next
fiscal towards capacity expansion and other aspects.
"The
investment will be funded out of internal accrual," he said.
According
to him, the company has started rolling out BS-IV emission norms compliant
vehicles. The Total Investment & Insurance
Solutions
Radhakrishnan
said the company will close the fiscal 2016-17 with a market share of around 14
per cent as the sales scooters and motorcycles picking up.
He
said the company's current market share in scooters is around 17 per cent (Q3
2016-17), motorcycles eight per cent (Q3 2016-17). The Total Investment & Insurance Solutions
He
said the company's revenue from spare parts sales is around 10 per cent.
Queried
about the three wheeler market, Radhakrishnan said sales has dipped owing to
various market factors, saying nearly 65 per cent of the three wheeler produced
are exported where the market has gone down. The Total Investment & Insurance Solutions
On
the company's Indonesian venture, Radhakrishnan said the business is expected
to breakeven next fiscal with losses halved this year to $3 million from around
$6 million.The Total Investment & Insurance
Solutions
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