TVS introduced the Jive, an auto- clutch motorcycle and the Wego, a scooter at strategic price points in the executive segment where the company had gaps in its portfolio. In the premium segment, the Apache RTR 180 was launched. This tweak to the two-wheeler product mix as well as robust three –wheeler and export sales not only brought in volume growth but also expanded margins and improved realisations.
The good run has continued into this year too with motor cycle sales in the April-November period growing 33 per cent year on year. To cater to the growing demand, it is spending Rs 200 crore on capacity expansions. The company targets a volume of 20 lakh units this year, with over 13 lakh units sold until November 2010. Already having a presence in Indonesia, it is looking at other South-east Asian, South American and African markets for exports. Going forward, an expected moderation in vehicle sales and rising input costs may dampen earnings growth.
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