TVS Motors to re-enter vehicle financing

With rising interest rates denting sales, India's third largest motorcycle manufacturer by sales, TVS Motor Company, are looking at a second foray into two-wheeler financing.


"We are considering vehicle-financing options, which could either involve tie-ups with banks and financial institutions or forming a unit within the company," said HS Goindi, head-marketing, TVS Motor Company.

Earlier this year, TVS Finance - the two-wheeler finance arm of the TVS Group was delisted from the stock markets and was scouting for a strategic investor.

At the launch of the company's first fuel-injection motorcycle, the Apache RTR FI 160cc, modified from the existing Apache 160, which is powered by a carburettor, the company said that rising interest rates had directly impacted sales of motorcycles especially in the entry-level 100cc segment.

The company strategy would be to launch a new motorcycle model evey quarter across all segments for FY 2009, most of which will be powered by the superior fuel-injection technology developed by its R&D wing.

In addition, TVS Motors will launch two new models of scooters to complement its Scooty, Teens, and Electric range.

The new Apache RTR FI with electronic sensors for better mileage and smoother motoring experience is priced at Rs 64,990 (ex-showroom Delhi). The price is about Rs 6000 more than the existing carburettor-kitted Apache 160 and delivers about 4-5 km more mileage totalling to about 55 km a litre.

With presence in all segments: Star/Star City 100cc, Flame (single-spark plug) 125cc, Apache (two variants) 160cc, TVS Company hopes to grow by about 15 per cent in FY 2009.

The company, which sells about 110,000 units a month, hopes to tap newer export markets in Asia and Africa. With an overall market share of around 17 per cent in the domestic two-wheeler market, the company expects to raise its export revenue from 11 per cent to about 25 per cent in the next three years.