The country’s long automobile maker TVS is on the bid of delivering the diesel version in auto rickshaws to penetrate the domestic market. Just before three months TVS began its export of three wheelers and is seeking market in Bangladesh, Mexico, Peru and Guatemala. The company’s next target is to drive into the diesel passenger market with the auto rickshaw within next two years, said the company’s President (Marketing).
TVS has established its presence in 2-stroke and 4-stroke engine in petrol, diesel and CNG and the current diesel auto rickshaw is meant for semi-urban and rural markets. The company unleashed its 200cc 4-stroke CNG auto rickshaw called TVS King ZS at Rs1.24 lakh. The company’s VP for Sales and Service said that the initiative to export has been made with Srilanka, Ethiopia and Egypt and the current target is to sell a minimum of 10000 units globally in the next fiscal end. The target for this end fiscal of domestic market is 18000-20000 units of three wheelers and it may be taken to 30000 units in FY 2011.
The company procures 60% of net sales through two wheelers and the ratio is expected to be 50:50 for both two wheelers and three wheelers. This depends on the outcome of the government’s policy norms, he said. The company’s unit at Hosur has the production capacity of annual one lakh units which is likely to be increased. The current running capacity is 20% which will be increased to 40% in the next fiscal said the VP. Further there will be increase in the dealer network in three wheelers sector to 110 by March 2010 (from the current 70). The company has no instant plans for cargo mode to enter into four wheeler segment of automobiles.