India to get cheaper bike after the cheapest car

Discussion in 'Economy & Infrastructure' started by bhramos, Dec 8, 2010.

  1. bhramos

    bhramos Elite Member Elite Member

    Mar 21, 2009
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    Bangalore: Tata's introduction of Nano has made the country proud and notice that it is possible to manufacture low-cost products in the country. Now, Venu Srinivasan, the Chairman & Managing Director of India's third-largest two-wheeler manufacturer TVS Motor Company, is planning to build cheaper bikes aimed at small towns and rural markets. So far, the cheapest bike from TVS, the 100cc TVS Star Sport, carries a price tag of 32,000.

    TVS is also working on alternate fuels and said it would look at electric vehicles. With the low-cost models, the company wants to provide users with international designs. Around 600 engineers are working on the development of these new products and in other advanced areas of technology. The team is currently working on low-cost models across product segments. This would result in the creation of a new segment within an existing segment.

    "We will develop products that are specific to rural areas and are affordable," Srinivasan told his shareholders at the company's recent annual general meeting. He also highlighted the significant growth shown by small towns in the last financial year.

    According to the company, towns with a population of under 1 million, which accounted for 75 percent of the industry?s sales, grew 29 percent, despite the restricted availability of retail finance. The company's mopeds, which are largely meant for rural areas, grew 30.3 percent during the year. Finally, TVS has found the niche in the domestic market and now company is looking at international designs and new technologies for its product portfolio.
  3. sob

    sob Moderator Moderator

    May 4, 2009
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    New Delhi
    The November sales figures of Nano, 500 cars, gives a very loud and clear signal, the Indian consumer wants quality and low cost together, not low price tag at the expense of quality.

    In the Indian context when our Industrialist say that they are targeting the rural market then the first thing that comes to the mind is that it will have lot of compromises on quality.
  4. gogbot

    gogbot Regular Member

    Oct 2, 2009
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    The Nano market was never mean for people who could afford a car.

    The nano market targets people who don't have car or have bike but can't afford a car.
    It was supposed to attract people who don't have cars a chance to own one.
    The car was never meant to be the best , but the cheapest.
    This bike will be no different , anyone who can now afford the fuel and initial capital cost can now get it.

    Frankly speaking i think Tata should have done a lot more to market the car. The market is certainly out there.

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