Mumbai: TVS Motor Company Ltd has signed a deal with a local business group in Honduras - Motomundo SA, as it plans to expand its business in Central America. Motomundo SA will look after the distribution, sales and service of TVS Motor’s two-wheeler vehicles in Honduras.
“Motomundo will start with an exclusive outlet for TVS Motor and within a year expand it to three stores in the country," the Indian two and three-wheeler manufacturer said in a statement on Thursday.
As part of the partnership, TVS Motor will expand across 40 Motomundo outlets and more than 25 dealers in Honduras. The company, however, did not disclose the timeline of its expansion plans. The newly-appointed distributor will also operate 25 service outlets for TVS Motor.
“With this partnership, we will be able to offer customised products with complete service and spare parts for our customers and consolidate our presence in the region," TVS Motor’s executive vice president for international business R Dilip said.
TVS Motor, which exports to more than 60 countries, retails its Apache range of motorcycles and Ntorq 125 and Wego scooters in Honduras.
In the September quarter of fiscal 2020, TVS Motor had expanded its presence in West Asia by appointing a distributor named Al Yousuf MC in the United Arab Emirates. In the third quarter, the firm had partnered with Cadisa Group to set up 15 flagship outlets and consolidate its footprint in Central America’s Guatemala and El Salvador.
TVS Motor's partnership with Motomundo indicates the former's aggressive push for exports as the domestic market continues to remain subdued due to the economic slowdown.
According to the Society of Indian Automobile Manufacturers (Siam) data, the company's two-wheeler exports grew by 14% year-on-year at 572,749 units for April–January of the ongoing fiscal. In the three-wheeler segment, TVS Motor has shipped 135,000 units recording a growth of more than 18% from a year ago.
According to TVS Motor’s annual report, two-wheeler exports in 2018-19 rose 26.4% from a year ago to 6.22 lakh units. Three-wheeler exports in 2018-19 were at 1.4 lakh units, up 70.3% year-on-year.