TVS Motors to sell 50000 three-wheelers in FY11

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TVS Motors to sell 50000 three-wheelers in FY11

In an exclusive interview with CNBC-TV18, SG Murali, Executive VP-Finance, TVS Motors, speaks about July sales numbers and gives his outlook going forward.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS July sales: How have auto cos fared? 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?

In an exclusive interview with CNBC-TV18, SG Murali, Executive VP-Finance, TVS Motors , speaks about July sales numbers and gives his outlook going forward.

Here is a verbatim transcript of the exclusive interview with SG Murali on CNBC-TV18. Also watch the accompanying video.

Q: One word on month on month decline that you have seen on motorcycles, what is that primarily on account of?

A: I do not think we need to look at month on month, I think we need to look at corresponding month. We have grown almost 35% in the overall two-wheelers and motorcycles have grown by about 47%. May-June is always a seasonal month, so there is nothing much to read between month to month numbers.

On the corresponding month, we have grown by 42% in motorcycles and overall two-wheelers we have grown by 35% and cumulative April to July, we have grown 34% in motorcycles and overall two-wheelers we have grown by 32%.

Q: What are the specific numbers for Jive? Are they a bit lower than your expectations or inline?

A: Jive, we are selling around 8,000 a month. It's catching up, the new concept is catching up and all the people who purchased the product are extremely happy and very soon the numbers will further increase substantially.

Q: What are you doing with your targets on the three-wheeler front? Have you been upping them from 50,000 targets because we are seeing some traction on the three-wheelers volumes?

A: The performance of three-wheeler is certainly very encouraging and it's been accepted very well, we have started exporting three-wheelers also. As of now, we are staying with the annual target of 50,000 numbers and we will look at it in the second half of the year.

Q: With the motorcycle performance for this month, what exactly is TVS' motorcycle market share at by the end of the month?

A: We look at the overall two-wheeler share. The overall two-wheeler is around 15% and that is what we are looking at increasing the share in course of time.

Q: Some of your larger peers have been suffering from production constraint problems. No such problem for you on the Jive or the Wego?

A: To some extent there was a bit of issue, but that's getting resolved. I think the entire tier I and tier II surprised us and now ramping up slowly. In the next two weeks time, the problem should get sorted out and we should have adequate stock to take care of the festival season.

Q: By when do you see some price hikes being taken on select products, given the kind of raw material prices you are seeing?

A: We have taken on the prices toward end of June in all two-wheelers. Three-wheelers also the price increase was taken sometime in the June quarter. Now, we are watching the commodity position closely and if the commodity position warrants a price increase then we will certainly take up the price variably.