TVS Motor enters 3-wheeler market

TVS Motor Company made news in the past fortnight. It made a foray into the three-wheeler market with the launch of the TVS King and followed it up by unveiling the 125cc Flame motorcycle on March 10. TVS is involved in a legal battle with rival Bajaj Auto over a technology patent and the company had to change the twin spark plug ignition system to a single spark plug unit. However, according to chairman and managing director Venu Srinivasan, the Flame’s performance will remain similar to the earlier twin spark plug system.

Foray into three-wheelers

On March 9, the TVS King was launched in Chennai in LPG and petrol versions at an on-road price ranging between Rs 90,000 and Rs 1.3 lakh, depending on the model.

The Tamil Nadu minister for rural development and local administration, M K Stalin, launched the vehicle in the presence of the transport minister, K N Nehru.

Venu Srinivasan said the three-wheeler would add Rs 400 crore to the top line of the company in 18 months.

During 2008-09, the company plans to sell 30,000 units, which will include a four-stroke CNG version (to be launched in July) for markets like Delhi. The company would roll out a diesel-engined commercial three-wheeler in the sub-one tonne category after a year and a half, he said.

The company has set up a Rs 120 crore plant with an installed capacity of one lakh units per year at its Hosur factory. According to Srinivasan, full capacity will be utilised in less than three years. Starting from Chennai initially, the company plans to make the King available across the country by December this year. The company will leverage its existing distribution and service network and also plans to export three-wheelers to more than 20 countries, he added.

According to Srinivasan, the petrol-engined TVS King will deliver 30 kilometres per litre due to its new 200cc, low friction seven-port engine. Other features include twin headlamps, large tail-lamps, single larger area windshield with laminated glass and car-like interiors with instrument cluster, dual-tone seats, bottle and magazine holders. Optional accessories include stylish wheel covers, FM radio, digital clock, and idol stand and an additional rear bumper.

Meanwhile, during the launch, TVS Motors also announced several welfare schemes for autorickshaw drivers and their families, including a one-year free accident and healthcare policy, in association with some insurance firms. The company also introduced a novel training programme for drivers in safety and preventive maintenance.

Given the existing competition in the segment, it will be interesting to see how TVS Motor Company's three-wheeler project pans out.

Flame relaunched

A day after the King's launch, the company re-introduced its 125cc-engined Flame after the original version was embroiled in a controversial technological wrangle with Bajaj Auto.

Calling the Flame the “hottest biking experience in India, he said, “TVS in keeping with its tradition of breaking new ground in two-wheelers is proud to have brought this world-class technology to India with the CCVTi engine. The engine has been developed and patented by AVL of Austria, which is a world leader in internal combustion technology, and licensed to TVS in India.”

The Flame will be priced at Rs 46,000 (ex-showroom) across India, he said and added that the company expects to sell around 15,000 units in March and touch the 25,000 mark during the festive season in October.

The Flame’s highlights include an innovative DeltaEdge styling which gives the bike a sporty finish. It features an intelligent mileage indicator that provides instantaneous mileage per litre data to the rider. The four-stroke 125cc three-valve engine is propelled by a dual induction system, coupled with a traditionally proven single spark plug ignition system. The engine employs two separate induction ports called power port and swirl port to achieve ‘no compromise’ performance.

Although the company does not have any plans to expand its manufacturing units, it plans to export its two-wheelers to 10 more countries, Srinivasan said. Exports will begin from April to many countries including Sri Lanka and some in Latin America.

TVS, it seems, has put the patent controversy behind it now and is going all out for a renewed assault.