India’s third largest two-wheeler maker TVS Motor Co Ltd has said that it is not going to increase prices despite rising steel costs. However, analysts believe that the company would increase prices from the next fiscal.
A senior official from TVS Motor said, “I don’t think that TVS Motors will increase the prices of its vehicles in January despite higher steel prices. However, the company may review prices in the next two-three months.”
Automakers are planning to go for price hikes in a phased manner—the first hike will be in January followed by another hike in April next year.
Analysts said that TVS Motor may not be affected by the current rise in steel prices because the company has contracts for steel supply till the first quarter of next year.
However, with the replacement of Bharat Stage Norms (BSN)-II by BSN-III in April 2010, the company may make the consumer spend more due to the improvement in its engines, the analyst said.
According to a PTI report, TVS Motor, which started exports of its three-wheelers a couple of months back, is also planning to venture into new markets like Bangladesh, Mexico, Peru and Guatemala.
"Our plan is to enter the diesel passenger market in the auto-rickshaw category of three-wheelers and we should be able to accomplish this within 18-24 months," HS Goindi, TVS Motor’s president for marketing told the media. The diesel three-wheeler will target the semi-urban and rural markets, he said, without disclosing details.
Mr Goindi said that the company had a presence in two-stroke and four-stroke engine segments in petrol, LPG and CNG variants.
According to data from the Society of Indian Automobile Manufacturers (SIAM), TVS Motor sold 11,36,344 units of two-wheelers in the domestic market in 2008-09. — Aaron Rodrigues