Launch of Wego will aid run-rate of scooters: TVS Motor

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Launch of Wego will aid run-rate of scooters: TVS Motor

In an interview with CNBC-TV18, HS Goindi, President Marketing, TVS Motor Ltd, spoke about the latest happenings in his company and sector.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS TVS Motor to make one-time provision for finance arm Buy TVS Motors, says Sukhani TVS Motor can test Rs 100-105: Gujral ALSO READ See latest News about TVS Motor See previous management interviews See what other Experts & Brokerages are saying about TVS Motor TVS Motor BSE | NSE 31/05/12 Are Mutual Funds betting on TVS Motor?

Q: You don't think that the marginal price increases which have been taken post excise hike will have any impact on demand going forward, do you?

A: The 2% increase in excise duty was expected by everyone and hence may not have a major effect when the economy is increasing and the income levels are going up. However, what the difference can be at some point of time if every state starts tinkering with the VAT (value added tax) and the entry level taxes and all, that will have compounding effect. That is the only thing we need to watch out. Hence, the earlier goods and services tax (GST) comes out, the better it is for the industry and for everyone. As of now 2% may not make much of a difference.

Q: What is your market share now in the motorcycle segment and how has it moved over the last three-four months?

A: We calculate market share from all the segments together, so in the last three months if you look at the numbers, we did about 1,19,000 in December, 1,26,000 in January and more than 1,40,000 in February and we hope to do a bit more in the month of March. So there is sequential growth. Sequential market share wise, in the month of February, we did get about 1.3% increase in our market share mainly due to the launch of Jive that gets added up and the Apache and the scooter also maintained and actually was slightly higher than even the earlier days.

The overall increase is about 1.3% in February, it is early days, and we need to watch out. We think we will be able to increase it further in next two-three months. With both the products firing Jive and the Wego, we should be able to increase the market share from now onwards to next two-three months also.

Q: What is the absolute market share, you told me that the increase is 1.3%, but what is the absolute market share?

A: Close to 15%.

Q: This is two-wheeler market share and not motorcycle market share?

A: Not motorcycle market share because motorcycle will be close to about 8.5% or so. I do not have exact details, but it will be about 8.5% market share in motorcycle. Scooters will be about more than 20%.