TVS Motor targets 8-10% growth in FY13

TVS Motor Company reported 4% increase in sales for April at 174,455 units. It sold 167,744 units in the same month last year.

Its two-wheeler sales grew 4% last month at 171,551 units, as against 164,183 units in April, 2011. Its total exports stood at 22,272 units last month, as against 25,275 units in April last year.

HS Goindi, president marketing, TVS Motor told CNBC-TV18 that April has not been the best month for the company. “Moped was as per the expectations in the line, as per the market growth rate. Motorcycles and scooters have been lower. The first 10-12 days has not been the best of the months,” he added.

However, the company aims to grow at the rate of 8-10% for the whole year. 

Further, it plans to launch a 125cc motorcycle in July. "This launch should fill the portfolio and once that fills the portfolio, motorcycle should start growing up, he added. 

Also Read: Bajaj Auto April sales up 4% YoY at 3.82 lakh units

Below is the edited transcript of Goindi's interview with CNBC-TV18. Also watch the accompanying video.

Q: Disappointing run for TVS Motors this month as well in terms of sales. What hit appetite?

A: Yes, this had not been the best of the month for us. Our Moped was as per the expectations in the line, as per the market growth rate. Motorcycles and scooters have been lower. The first 10-12 days has not been the best of the months. The last 13-14 days we definitely saw some upsurge in the retail sales. So, we need to watch out. Details about the the macro data and prediction of the monsoon is also affecting the sentiment.

Q: Even though it’s in line with your targets both Moped and scooters are down about 9% month-on-month. How much of this is because of the increased competition that you are facing now in the two wheeler space?

A: I don’t see month-on-month alone, because every month has got a seasonality affected. Normally, April over March is lower by about 8-10% throughout the last five-seven years, so that’s not the cause of concern. Mopeds have grown at about 14% over last year during the same month. That’s more important. So, month-on-month has got a different meaning because of seasonality factor.

Q: Some of your larger peers though like Bajaj and Hero have not done so badly this month and I believe TVS has lost the number three market position that it had to Honda. Are you facing an uphill task in terms of sudden and intense competition from Honda as a group?

A: Competition has been there right from last so many years. At some point of time because of some products and all the things go well and sometimes lack of products does make a difference. Our job is to keep on working around that. So we had Jive which was a good technology product, but it did not give us the volume what we expected in the last two years time and we lost time there.

As we announced we are coming out with our executive level bike where we were missing out till now, for 125 cc bike in the month of July-August. So that should fill the portfolio and once that fills the portfolio the motorcycle should start growing up. We unfortunately, lost the Jive which was intended in that particular range. Engine was proven, customers like the bike, they liked the quality, but unfortunately the segment seems to be small, the kind of people who wanted that benefit.

Q: What is it that TVS now stands at in terms of market share and position? What kind of targets are you still working with for the full year in terms of sales, even calendar year?

A: I do not have the market share exact details of last month because today is the first day of working. As far as going forward is concerned, we are looking at a growth rate of 8-10% for the whole year. We have our moped which would be our mainstay which are going to be there, our scooters, StarCity and Sport and Apache. We are going to be having a 125 cc motorcycle coming up in the month of July-August which should add to the portfolio.