The company plans to roll out several new vehicles in the coming year

TVS Motor Company reported total two wheeler sales of 108,151 units in May 2007 compared to 124,678 units in May 2006.

TVS Scooty continues to be the market leader in the sub 100 cc scooter segment recording sales of 25,280 units in May 2007 compared to 20,396 units sold during May 2006, recording a growth of 24%.

On the export front, TVS Motor Company exported 9,849 units, recording a growth of 15% compared to the corresponding period last year.

In the same period the company's motorcycle sales recorded 49,651 units compared to 78,271 units recorded in May 2006.

The decline in Motorcycles sales is in line with the slowdown being experienced by the industry in the last few months. This was mainly due to reduced availability, increased cost and stringent norms being followed by retail financiers. More than 60 per cent of the sales of two wheelers are dependent on retail finance. These factors dampened the growth during the crucial marriage season in the key Northern states of Uttar Pradesh, Madhya Pradesh, Rajasthan, etc. Consequently the marriage season sales have significantly been lower during April - May 07 compared to last year.

The company anticipating significant sales during marriage season had supplied adequate two wheelers to the trade. Consequent to the lower than anticipated sales during marriage season, due to above reasons, the company is consciously reducing the stock of motorcycles held by the trade to keep the stocks under control. This action will reduce the interest burden on the trade and will help the Company to leverage growth in sales in the coming months.

TVS StaR continues to perform well and will continue to make significant inroads in the economy segment of the vehicles by offering superior value.

Riding high on the style and design quotient, Company will introduce an upgraded version of  TVS Apache with several new features that are normally seen in high-end international motorcycles.

The company, in order to increase its presence in the executive segment, is developing a motorcycle, which will be launched in the second half of this year. The company is confident that this motorcycle will redefine the segment by setting a new benchmark in the industry in terms of its technology, performance and style.

The company has already started operations at its Himachal Pradesh Plant. The Plant has an annual capacity of 4,00,000 units scalable to 6,00,000 units. This will help the company to improve its service level to the vast dealer network in North India thereby increasing sales and to leverage the fiscal benefits.

The three-wheeler project is on schedule and launch is slated for the second half of this year.

The Indonesian project is on schedule and the new product 'TVS Neo', a high tech innovation packed Bebek exclusively developed for the Indonesian market will be launched in June 2007 by PT TVS Motor Indonesia, subsidiary of TVS Motor Company Ltd.

The company expects that the pressure on the margin will continue in the first half of this year due to high cost of raw material and intense competitive activity. However, in the second half of the year, the company expects the pressure on margin to ease with the launch of new products and the other initiatives mentioned above.

TVS Motor Company Limited, the flagship company of the USD 2.7 billion TVS Group, is the third largest two-wheeler manufacturer in India and among the top ten in the world, with an annual turnover of over USD 750 million. The company is a recipient of The Deming Prize for Total Quality Management, the global hallmark of Quality.