TVS Motor to invest Rs.100 cr. in R & D

TVS Motor Company plans to invest Rs 100-125 crore this year on product development and R&D. The company expects to launch three two-wheelers, two in the executive segment, one of them in August, and a scooter in the last quarter. Last financial year, the company invested Rs 200 crore on capacity expansion and on product development. “We now have adequate capacity of 3 million units across our facilities in Hosur, Mysore and Himachal; so this year's capex will be on product development and research,” said Mr S.G. Murali, CFO, TVS Motor. TVS Motor has an overall market share of 14 per cent in the two-wheeler segment, behind Hero Honda and Bajaj. The company aims to gain share with the new launches this year. TVS Motor also hopes to benefit from the petrol price hike which could see car-buyers opting for two-wheelers. Last year, the company's revenues grew 13 per cent to Rs 7,126 crore. This year, while the industry is expected to grow at around 10 per cent, TVS expects to grow ahead of the industry. Indonesian subsidiary On rupee depreciation, Mr Murali said while imports can have an impact, since TVS is a net-exporter, the benefits are more. TVS also expects its Indonesian subsidiary to break even towards the end of the year. PT TVS Motor Company, Indonesia, set up in 2007, has been growing each year, said Mr Murali. While the first year saw sales of 12,000 units, last year it nearly doubled to 23,066 units. Its losses last year were $9 million. “We hope to bring it down in the first half and achieve break-even in the second half.” Last year, the Indonesian arm started exporting to Philippines, Brazil, Turkey and Latin America.