TVS Motors expects to bounce back with new launches

New launches, cost and platform rationalization is what TVS Motors is betting on to script a turn around and regain the No. 3 spot it lost to Honda. Venu Srinivasan, chairman of the company assured shareholders at its AGM today that they will see a more aggressive avatar of TVS, reports Swathi Narayanan of CNBC-TV18.

Venu Srinivasan faced tough questions from shareholders at the company's AGM today. He was asked if bringing Mahindra Singh Dhoni and Virat Kohli on board had actually helped boost sagging sales and why despite big budget advertising brand TVS was not the brand of choice for two wheeler buyers. There was an honest admission from the management that its strategy has not delivered but it was hopeful of a turnaround
But it won'’t be an easy ride. The company has lost market share and mind share, to its competitors, with Honda motorcycle taking over as the No. 3 player. Sales continue to be weak, with the company registering an almost 21% drop in two-wheeler sales year on year in August. The export picture does not look any better and its Indonesian subsidiary continues to face challenges. Margins have also been under pressure, coming in below the industry average.
The management hopes that its new launches will help it script a turnaround over the next 18 months. Its big bet is the 125 cc Phoenix - which is slated to launch at the end of the month and is the company's latest foray into the competitive commuter segment.
Venu Srinivasan, CMD, TVS Motor, says that from the start of this September, with Phoenix, you will see a series of products come out of the company. Every quarter you will see a new product.
Besides new products, TVS is also hoping to reduce costs and is looking at consolidating its two-wheeler platforms to just two or three.
"One of the key thrust areas is to reduce the number of platforms and therefore bring down number of parts, improving costs and quality and reliability," says Srinivasan.
Besides new launches, the company will also have a new man at the helm with Venu Srinivasan's son, Sudarhsan venue taking over as the vice-president effective December this year. It promises to a trial by fire for Sudarshan, who was inducted into the board of group company, Sundaram Clayton last year.