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New Delhi, Jan 12: At a time when global crude prices are hovering around $100 a barrel, country’s third largest two-wheeler manufacturer TVS Motor Company is toeing with the idea of a CNG motorcycle. The new vehicle is expected to bring down the cost of riding per km by 40%.
“We will test-market a CNG-fitted motorcycle in New Delhi and Gujarat in September and expect it to be 40% cheaper in terms of cost of driving per kilometre,” said TVS Motors CMD Venu Srinivasan adding, a small number of these will be initially available to customers in these cities.
TVS, which has lately been aggressive on R&D front, plans to fit in a CNG kit on a motorcycle that will use the same platform as its 125cc Flame. “Expected to be priced Rs 3,000-4,000 more than the normal bike and will have a seven litre fuel tank,” he added.
The company, which reported 40% dip in motorcycle sales during April-December 2007-08 at 3,90,140 units sold as compared with 6,50,596 units during 2006-07, expects a turnaround in its fortune with a slew of launches in the next fiscal.
It is planning to launch the entry-level Star Sport prices at Rs 32,000 (ex-showroom), an executive bike, a scooter, an upgraded version of TVS Apache (with engine capacity above the existing 160cc bike) and a three-wheeler.
Not just this, the company, which has been worst hit due to credit crunch and high interest rates, is now betting big on Flame.
“Lack of finance availability, especially in B and C towns has led to a decline of 15% in the overall motorcycle market during the current fiscal and this is even bigger in the entry level segment, which witnessed a dip of nearly 25%. TVS has up to now been dependent on the segment to the extent of around 75% and has therefore felt the pinch,” Srinivasan said, adding, the company expects to sell around 40,000 units of Flame this financial year.
He said due to a decline in overall sales, the company was also expected to take a hit of 4.1% in its top-line during 2007-08 at Rs 3,700 crore. The company had closed previous fiscal at Rs 3,860 crore.
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