Mumbai: TVS Motor Co. Ltd, India’s third largest motorcycle maker, expects to grow 5% in the year that began on 1 April, compared with an 8% fall in the previous fiscal, its top official said.
“We have started growing again because sentiment in the market is coming back,” chairman and managing director Venu Srinivasan said.
TVS plans five-six new offerings, including at least two new products. A scooter will be part of the new launches.
Srinivasan said there’s an opportunity to build domestic volumes as the market “is no longer under pressure as it was six months ago”.
However, financing remains a problem in India, though not as serious as it was a few months ago. Some private banks are coming back into the market with more stringent lending norms, but that may not be enough.
Two-wheeler firms are likely to step up their financing activities further. Currently, only around 23% of two-wheelers are estimated to be sold through this route.
“I think most of us will be having a strong finance company in the future because we need it more than cars and trucks do,” Srinivasan said.
With the company riding back into growth, TVS may also look at further reducing its gap with rival Bajaj Auto Ltd, the country’s second largest two-wheeler manufacturer, which shrunk from 527,000 units in the year to 31 March 2008 to 149,000 units in fiscal 2009.