TVS gambles for survival, unveils 7 new products

Battered by interest rates and left behind by competition, the country8217;s third largest two wheeler manufacturer unveiled three new bikes...

Battered by interest rates and left behind by competition, the country8217;s third largest two wheeler manufacturer unveiled three new bikes and a scooter and forayed into three wheeler segment ushering in a 8220;new era for the company8221;. TVS Motor8217;s sales slid by 10 per cent in the first half of this fiscal and today8217;s product blitz seeks to plug loopholes in its marketing strategy after the phaseout of its once bestselling Victor, and prepare the company to withstand the a competition that8217;s getting more aggressive every quarter.

The company unveiled its new 125cc Flame that replaces Victor along with a fuel injected 160cc Apache RTR and a refurbished 110cc entry level Star City covering the whole spectrum of the motorcycle segment. It also forays into new territories like three wheelers with the launch of a petrol, CNG and LPG driven variants as also an electric powered version of its popular scooterette Scooty Teenz Electric. While the Star City will see a phased launch across the country beginning tomorrow, the three wheelers will make their debut by the middle of next month and the bikes and scooter will hit the market only by November.

8220;This is a year of a new TVS and today8217;s product roll out which is the biggest in the automotive history is the result of a long drawn out planning,8221; said Venu Srinivasan, chairman and managing director, TVS. 8220;With modern technology and a completely new range of products coupled with new branding in our offices, plant, advertising and branding, the market will wake up to a new face of the company.8221;

The spate of launches however does not end with this. In the horizon are CNG LPG powered motorcycles, hybrids and another new platform of three wheelers. 8220;Alternate fuel technologies are high on our agenda and we have started the process with the Scooty Teenz. We have motorcycles which would run on CNG ready with us but it will be rolled out only by February-March next year,8221; Srinivasan said. 8220;These bikes will have huge benefits by way of 60 per cent lower running costs and 50 per cent lower emissions.8221;

While the company is taking competition head-on while showcasing its technological might, a lot will depend on the success or failure of Flame in the executive segment which commands a large share of the market. 8220;We do not have a product in the executive segment which makes us non existent in almost 50 per cent of the market. We expect the Flame to churn in the numbers just like Star City and Apache in their respective segments,8221; said KN Radhakrishnan, president, TVS.

After witnessing depressing sales in the first half of this fiscal, the company expects a flat third quarter but will be back in the positive growth territory in the last quarter. 8220;Our launches will be complete by next year and in the last quarter we expect to grow by 15 per cent to round off the fiscal on a positive note,8221; Srinivasan said.