TVS Motor to invest Rs 200 cr in expansion

Chennai-based motorcycle maker TVS Motor said on Thursday it is going to invest Rs 200 crore by April 2011 to increase capacity from 2.1 million to 2.8 million units. “We will increase production of our two-wheelers in line with the industry demands. We will invest about Rs 200 crore to increase capacity to 2.8 million units,” chairman of TVS Motor Venu Srinivasan said.

The company is also looking to set up a design centre in Indonesia where it already has a manufacturing unit. Srinivasan said the company's Indonesian unit would break even by next year. “I feel that by next year the company should break even,” he said. The company expects to sell 18 lakh of two-wheelers in the domestic market and export 2.5 lakh units this year.

On the export front Srinivasan said that the company would increase its exports to Sri Lanka, Bangladesh and the Asean countries. He also said that TVS may use its Brazilian facility to expand into other South American countries like Columbia at a later date.