TVS Motor bets big on Uganda, Kenya
Two- and three-wheeler-maker TVS Motor Company Ltd Friday said it plans to set up an assembly line in Uganda in six months time and also launch two new motorcycle models in the East African nation to capture 25 percent market share in a year's time.
"During the course of next two quarters we intend to step up an ultra modern assembly line through which we will roll out products that are tailor made for the Ugandan region. We also intend to launch two new motorcycle models during this period.
"These motorcycles will be specifically developed and designed keeping African conditions in mind and will be assembled at the same facility," K.N. Radhakrishnan, president and CEO was quoted as saying in a statement filed with the stock exchange.
Company officials were not available for comments on the outlay and whether the Ugandan venture will be a wholly owned subsidiary or a joint venture with the local partner.
According to Radhakrishnan, Uganda is a large market for two-wheelers and TVS Motor will capture around 25 percent of the market share within one year of the assembly line going on stream.
Last month TVS Motor announced its plans to launch two new motorcycle models in Kenya, commissioning an assembly line at Nakuru.
According to TVS Motor, the company has a decade-long presence in Kenya and is currently partnered with Car and General, Nairobi and Abson Motors, Mombasa for distribution of two- and three-wheelers, respectively.
Radhakrishnan said the company commands 27 percent share in the Kenyan market among competing equivalent products. With a fully functional assembly line and with the introduction of new models the market share is expected to go up to 40 percent.
(Posted on 02-08-2013)