TVS Motors: Getting its mojo back may be a tall task

In the fight betweenBajaj Auto and Hero MotoCorp for market share in the two-wheeler segment, TVS Motors has been continuously losing ground. Though the company regained its position a few years ago, for the last one year it has been struggling and is now languishing at the fourth position, behind evenHonda.

The one saving grace, however, has been its trusted moped models which constitute 45 percent of the company's total sales. Moreover, TVS enjoys complete monopoly in this segment while all others have ditched the moped altogether.

According to a report in the Business Standard, Mopeds saw sales of 58,618 units in August, which is a slight fall of 0.3 percent when compared to the 58,818 units sold in the same month a year ago. But the overall two-wheeler sales for TVS have dropped by almost 21 percent year on year - from 190,000 units a year ago to 150,000 this year.

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The lack of anygame-changing series of scooters or motorcycles eroded its market value too. From Rs 840 in Sep 2001, the stock is trading at Rs 42 today.

So what is the moped king doing to revive its sales and regain market share?

[caption id="attachment_467814" align="alignleft" width="380"] The company plans to launch a series of two-wheelers, starting this month with Phoenix, a 125-cc motorcycle, every quarter.[/caption]

Instead of focusing on production and supply chains, TVS will now focus on new products and markets.

WhileHonda Motorcycle gained market share by growing moreaggressively after its split with Hero, TVS too has aggressive plans-roll out at least one motorcycle everyquarterin the next 15 months.

"TVS will also introduce bikes with engine capacities ranging from 200-250cc, another segment where it has no presence. The company aims to retain its position in the sub-100cc ungeared scooter and executive scooter segments through new launches and a series of brand activities. Other launches include a variant of its premium segment bikes, the Apache RTR 160cc and 180cc," the Business Standard report said.

But the competition in this market is cut throat. EvenHonda Motor Company is looking ahead to cash on the 100 cc motorcycles segment as the demand in this category is rising and individuals are not satisfied with the available options.

The company sees a growth potential in Indonesia, Nigeria and Brazil.

TVS is planning to expand its presence through social networks like Facebook and Twitter to leverage the potential.

It is also in talks with German auto maker BMW's unit, BMW Motorrad, to address its technology gap. But since its competitors have alreadytraversedthat path before , by the time TVS gets there chances are the formers may have just leaped ahead.