TVS sales fall 22 percent in September, all-new 125cc Phoenix rolls out

October 3, 2012: The Hosur-based TVS Motor has registered total two-wheeler sales of 165,092 units during September 2012, which is a 23.5 percent drop from sales of 215,690 units in September 2011. This includes a negative growth of 22 percent in the domestic market where the company’s domestic two-wheeler sales stood at 149,191 units for the month against 192,027 units in September 2011.

In the export sector, due to a relatively smaller base, the company registered a sharper drop of nearly 33 percent in September 2012 exporting 15,901 two-wheelers as against the exports of 23,663 two-wheelers during September 2011.

Splitting the two-wheelers into motorcycles and scooters, the total overall sales during the month including exports indicate that motorcycles and scooters have witnessed an almost similar negative growth at 30 percent and 28 percent respectively as against September 2011 sales. TVS recorded total sales of 63,832 motorcycles and 40,055 scooters in September 2012.

Banking on the Phoenix

In order to fuel its sales numbers during the Diwali season, TVS launched its newest motorcycle – the 125cc Phoenix – on September 28 in the executive segment (110-125cc), which accounts for almost 40 percent of the total motorcycle market in India. Besides, practically being the second TVS motorcycle in this segment apart from the TVS Flame 125 which is nearly non-existent in the market, the Phoenix 125 comes loaded with many features earlier seen in 150cc motorcycles but now trickling down to the 125cc segment thereby offering more value for money.

The Phoenix 125 comes with an all-new, more powerful and fuel-efficient engine, a front disc brake, and improved switchgear added with a hazard light button for rider’s safety which, along with a fully digital instrument console, are the segment-first features. Riding high on the expectations from this motorcycle, the company plans to sell around 20,000 units of Phoenix 125 a month in another six months to come. Priced at Rs 51,000 for the drum brake variant and Rs 53,000 for the disc brake variant (both prices ex-showroom Chennai), the new motorcycle makes way for the company in the Rs 50,000-Rs 60,000 price bracket and will compete with established motorcycles such as the segment bestseller Honda Shine, the new Bajaj Discover 125ST, the Hero Super Splendor, Hero Glamour and others.

Speaking to Autocar Professional at the launch in Chennai, chairman Venu Srinivasan said that the 125cc Phoenix is the beginning of a fresh product offensive that will see a new product being launched every quarter till the end of 2013. Next in line is a revival of the erstwhile Victor which will be launched in August 2013.

TVS plans to launch four new two-wheelers by the end of 2013 including two scooters. The company, which offers the Star Sport as the entry-level bike and the Apache at the higher end, so far now looks to gain some foothold in the executive segment and is targeting a 17 percent market share by end-2013 as against 13 percent at present.

The company has also revealed plans to eventually reduce the number of parts it requires across its product range by 40 percent in the next four years. Further cost benefits will be achieved by reducing its number of two-wheeler platforms to two from the current four.

KARTHIK H & AMIT PANDAY