CHENNAI: Chennai-based auto major TVS Motor Company has entered into a partnership with Central American distribution firm MASESA (Mayor Servicios Socieda Anonima) to sell its two- and three-wheelers are sold in the latter’s showrooms across Guatemala, Honduras, El Salvador, Costa Rica and Nicaragua.
According to TVS family scion and joint managing director of TVS Motor Company Sudarshan Venu, the partnership expands TVS’ presence across the central American markets – ones that TVS thinks hold promise.
“The tie-up will start with distribution of TVS vehicles. Currently, we have no plans to set up a manufacturing unit in central America but we will explore and examine once scale in the market is achieved,” he said.
The motorcycles and scooters that TVS will sell in central American markets specified earlier will be manufactured at TVS’ existing plants. Most models would be manufactured from the India plant and some from the company’s Indonesia plant.
The models being introduced are a mix of those designed for the Indian and Indonesian markets. In Motorcycles, TVS will sell StaR HLX 100/125, Sport 100 ES, Phoenix 125, Stryker 125 and the Apache 160/180/200 models from India and the Max 125 and Neo 110 (MC) from Indonesia.
In scooters, Scooty Zest 110 and Wego 110 will be sold, while TVS King DLX will be the only three-wheeler. The firm will soon begin to design and manufacture products exclusively for the central American markets.
While MASESA will handle marketing, sales, distribution, service and spare parts, 500-600 exclusive TVS outlets will be opened in Central America in the next 12 months.
“TVS aims to garner 25 per cent of the $250-million market. We are targeting revenue of Rs 500 crore in the next three years,” said Venu, adding that the venture to would be profitable from Day One.
“With this tie-up, we can now customize our offerings and provide perfect products for our customers in Central America. With this move, we will further consolidate our presence in the region,” he added.