TVS Motor to strengthen presence in Central America
TVS Motor Company, a leading two and three-wheeler manufacturer, on Thursday announced its alliance with MASESA, a Gautemala-based company and a leader in the commercialisation of motorcycles and Tuk Tuks in the Central American region. The alliance is in line with TVS’ plan to expand and strengthen its presence in Central America, LATAM, South East Asia and Middle East.
As per the agreement, MASESA will establish a chain of 500 – 600 exclusive TVS outlets over the next 12 months in Gautemala, El Salvador, Honduras, Nicaragua and Costa Rica.
“We have been exporting two-wheelers in small numbers to these markets, which are fragmented and have a presence of several Chinese companies. With this alliance with MASESA, we are sure to strengthen our presence and become a leading player in a short period,” Sudarshan Venu, joint managing director, TVS Motor Company said.
“The unrivalled distribution network that MASESA enjoys in this region is the ideal fit for us. With this tie-up, we can now customise our offerings and provide perfect products for our customers in Central America and consolidate our presence in the region,” Venu said.
“We aim to garner 25 per cent market share in the region over the next three years. We are targeting a revenue of Rs 500 crore in the next three years and we expect the venture to be profitable from Day One,” he said.
The company’s product portfolio for the Central American region will be up to 200 CC. “We expect large volumes to come from the 100 – 125 CC segments. The two-wheeler market in Central America is similar to that of India, with the exception of the Taxi segment. We will also be targeting the Taxi segment over there,” Venu said.
To start with, TVS Motor has identified a mix of scooters and motorcycles for sale in Central America. These include Scooty Zest and Wego scooters, StaR, Sport, Phoenix, Stryker and Apache motorcycles, ranging from 100 – 200 CC, as well as TVS King three-wheeler. While these products will be manufactured at Hosur and Mysuru plants in India initially, it intends to add two more products – Max 125 and Neo 110, products that will be manufactured at the company’s Indonesian plant.
“We have no plans of setting up a manufacturing facility in Central America. But, we will explore and examine the option, once scale is achieved,” Venu said.
D Govardan