The Hindu Business Line : TVS Motors surges amid huge volumes

Additionally, market expectation is high given the fact that the company proposes to launch its new hi-tech, four-stroke motorcycle TVS Centra this month at the New Delhi auto expo.

An upgraded version of its top-selling version TVS Victor is also expected to be rolled out during January-March 2004.

Analysts, however, refuse to share the market optimism with regard to the company's sales figures for January.

``There is no denying that December is a sluggish month for vehicle sales. Nobody buys a vehicle in December keeping in mind registration issues etc. However, the last three months have been poor for TVS Motors as far as its sales volumes are concerned. While the new launches may happen, the ramp up will not be easy. January will not contribute to incremental sales from new products,'' an analyst with a reputed broking house said.

The last three months' (Oct-Dec) volume figures motorcycle segment have been 61,000, 48,000 and 52,464. ``The period October-November was particularly bad for the company due to production constraints.

And if you don't have products to sell in the festival season, you are bound to lose out to competition,'' a source said. Analysts are of the view that the company needs to sell more than one lakh bikes in January for the numbers to even read well. ``It will take some time before the new launches translates into volumes. And a more than one lakh sales in January from 52,000 is very difficult to believe,'' an analyst reasoned.

Company sources, however, are extremely bullish on reporting improved sales performance and believe that one lakh two wheelers is not a problem for January.

``The problems of rolling out into the market without enough vehicles will not be seen in this product. Given our extended dealer network, in 10 days of the launch the product will reach the length and breadth of the country,'' a spokesperson of the company told Business Line with reference to the launch of TVS Centra.

Commenting on the poor performance in terms of total vehicle sales in the last three months, the spokesperson said they were confident the slump would be corrected in the last quarter.

The stock ended the day at Rs 112, up 5.11 per cent, with around 25.62 lakh shares traded on the NSE. On the BSE, it ended the day at Rs 111.35, up 4.21 per cent, with around 10.09 lakh shares traded.

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