TVS Motor Indonesia to break even this year
Following the successful launch of new scooters in Indonesia in the form of Neo XR, RockZ New, Tormax 150, Dazz and motorcycles like TVS Apache RTR 80 and RTR 160, PT TVS Motor, the subsidiary of Chennai based TVS Motor Co., expects to break even this year, after registering losses in the previous years.
Though the Indonesian two wheeler market is dominated by Japanese heavy weights such as Honda, Yamaha and Suzuki; India’s TVS Motors, through their Indonesian arm PT TVS Motor Co, hope to break even this financial year. This was announced at the company‚Äôs 22nd AGM held by Venu Srinivasan, Chairman and MD.
Indonesia is a huge two wheeler market, where vehicles buyers show¬†more preference for scooters which makes up about 65% of the auto market.¬†New TVS scooters¬†launched in Indonesia are slowly finding more number of¬†buyers in the country. But it will still be difficult to compete with Japanese brands,¬†considering Indonesian banks do not give loans to¬†scooter from Indian companies. And that too where about 75% buyers use finance schemes to buy scooters in Indonesia. This is a major road-block for Indian companies to break-through in Indonesia.
But, the Indian company is finding its way forward. The fourth quarter of 2013-14 fiscal saw TVS Motor¬†post positive results as compared to losses posted a year earlier.
Speaking about India, the two wheeler industry is predicted to see stronger performance in this financial year as compared to the last year when growth was at 7.4%. Expecting to see growth at 11%, the company still has some concerns about the deficient monsoon in the country which could have an impact on incomes of buyers in rural areas. New launches still boost company morale as they hope to see market share improve to 14% during the year.
A total of 6 new products are planned for India launch this year. This will be in the form of 5 two wheelers, and 1 three wheeler. Apart from this, TVS has a long term of launching 1 new product every three months in order to increase market share.
via Live Mint