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Apr18
India: TVS Motor Company riding high
TVS Motor Company (TVS M) is India's third largest motorcycle maker. The company has announced its financial results for the last fiscal year (ended on March 31, 2006). The company has informed the media that it expects 12%-15% increase in the sale of two wheelers in the current fiscal year (ending on 31 March 2007). Last year, the domestic sale and export both were higher than the previous year and the company sold 1.34 million two-wheeled vehicles including 806,708 motorcycles. The positive growth in the Indian economy is the main reason behind the company's growing sale. In India, motor cycle is considered to be a very important vehicle to working people because of its low consumption of fuel. In many cities, it is very easy to buy a motor cycle through easy and long term installments.  
 
Inspired by the success, TVS Motor Company is going to invest $55 million in a plant in Indonesia. The plant will become operation after a few months and it will have a production capacity of 250,000 motor cycles a year.
 
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