Expect over 7-8% sales growth in festive season: TVS Motor

TVS Motor expects growth a little over 7-8 percent growth in sales during the festive season. Speaking to CNBC-TV18, KN Radhakrishnan, President, TVS Motor says the second half of this year should be good for the two-wheeler industry.“Our products are very well received in the market whether it is Apache or Starcity Plus, Jupiter, Wego and Zest; the quality of the products has been very good and the brand image of TVS has been growing,” he adds.On rural sales, he says though monsoons were disappointing this quarter, he hopes to see a better performance in Q3 and Q4Below is the transcript of KN Radhakrishnan's interview with Farah Bookwala on CNBC-TV18. Q: A little while ago we spoke to Honda Motors and they are of the form opinions that even in this festive season if the industry manages to do about 7-8 percent growth in the festive season alone, then perhaps by the end of FY16 we can look at a growth of 3-4 percent. Is this a view that resonates with your own personal view as well?A: I am expecting little better than that in the festive season but we will have to see the real growth, 2016-17 will be a good year is our estimate. Q: Do you believe that in FY16 growth rates can touch upwards of 5 percent or do you believe that we have lost out on the first six months and it would be hard to play the catching up game?A Maybe second half of this year, we are all eagerly looking forward from the season time that things will be much better.Q: Even in this very tough environment we have seen that you have been able to protect your growth rate which was still coming in at 2 percent at a time when the market is down by about 3-4 percent. What is it that you are doing differently this year in order to not just protect your market share but ensure that you are still in the positive territory as far as growth goes?A: The most important thing is our products are very well received in the market whether it is Apache or Starcity Plus, Jupiter, Wego and Zest. The quality of the products has been very good and the brand image of TVS has been growing, that has definitely helped us to keep up the momentum. Q: Is it that semi-urban areas are driving growth or are you seeing that rural areas are able to contribute as effectively even in an environment where the sub-par monsoon has dislodged sentiments at this point?A: It was little disappointing that quarter two we all expected a little better monsoon but hopefully we will have to see the quarter three and quarter four supporting. Q: Even in this tough environment the one silver lining has been exports. For TVS motors as well, exports is a bulk of your sales as well. Do you believe that this export momentum will sustain even in FY17 and FY18 or do you believe that perhaps we could be at a situation where even exports might wither a bit?A: Really, the exports have been doing very well for us. Whichever markets we are present, the acceptance of our brand has been very good and we are maintaining the momentum. I am very confident that we will hit more and more market share in the future.