TVS Motor is will be investing Rs 500 crore in their operations this year and will launch new products. The new launches will include high-powered motorcycles, scooters and the investment would also include the development of new engines. The company has earned a higher capital expenditure of Rs 500 crore this year compared to earlier years. This is due to its scooters segment as well as its partnership with BMW for premium motorcycles in the country which has witnessed a considerable growth. With the increased capacity for expenditure, the two-wheeler manufacturer will further invest in its facilities to increase production capacity at three locations. The automaker will increase its two-wheeler production from 35 lakh units to around 45 lakh units annually.
Every year, the average spend of the company was between Rs 300 crore and Rs 400 crore as capital expenditure (CAPEX), which was earlier Rs 250 crore. This year, the company has confirmed to MoneyControl, that it will invest Rs 500 crore for in order to increase production capacity. Along with the increase in production, the new, more powerful engine would also cater to international markets.
TVS is already working on its most-powerful motorcycle till date, the Apache RR 310S or the Akula, which has been jointly developed by BMW and TVS Motor and is in its final phases of testing. The upcoming motorcycle is expected to be launched this year at an expected price of between around Rs 1.50 lakh, ex-showroom. A number of tests of the motorcycle has been done and it has also been spotted on numerous occasions on public roads in the country. Along side the new Apache model, BMW Motorrad is also expected to roll out its entry-level sub-500 cc model, the G310R, however, there is no confirmation of the launch of this naked motorcycle. Both motorcycles share the engine as well as other key mechanical components and will be produced in India for the domestic as well as international markets.
Last year, TVS stood at the second position in the scooter segment and sold 8.26 lakh units, registering a growth of seven percent. In the motorcycle segment, two-wheeler maker sold 7.73 lakh units and recorded a growth of nine percent.