Chennai, July 20 () : TVS Motors ranked India’s no. 4 two-wheeler maker at the annual general body meeting assured the shareholders that it would put up better performance and asked to be patient. For many years it was ranked third in the two-wheeler segment but last year it was overtaken by Honda. The company which once clocked 20% market share has only 5.5% with Hero, Bajaj and Honda being the top three.
With the performance being dull, share prices fell by 32% and the shareholders expressed their distress. The company CMD Venu Srinivasan pacified them saying a plan of action has been put in place. The company could bring out new products and no presence in the key executive segment affected its prospects in the past few years.
Srinivasan said the delays were because they wanted to bring out top class quality product similar to the rival Honda. TVS entered into a pact with BMW to bring two wheelers below 500 cc. This Srinivasan said opened up the company to the engineering know how and the company decided to go slow and come out with a zero defect product.
TVS – Suzuki JV was a success till they parted. Srinivasan then came out with model Victor which was a hit. Later, models Flame and Centura were not up to the mark. After the split with Suzuki 11 years back , the company is still getting a product in four-stroke model to take on Honda.
Srinivasan said that they have been in the market for 34 years and he was addressing the 21st shareholder meeting. He promised at the meeting that the next three years would see the company post EBITDA of 8%, up from the present 6.5%. He said that the company was turning into a success in the long run and despite a poor market due to economic meltdown, he was risking it by saying it will give better results next year.