Hyderabad: Leading two wheeler maker TVS Motor Company Ltd expects to make operations of its Indonesian subsidiary, PT TVS Motor, profitable during the current fiscal, a senior executive of the company said on Thursday.
J S Srinivasan, Vice President (Sales), TVS Motors, said the company would take a call on the expansion of its manufacturing plants during the current year as the capacity utilisation of the plants has reached 90 percent.
"It (Indonesian subsidiary) is doing well. This year there has been an improvement in sales. It is just 3-4 years we are there. So I think this year we should be able to make some good growth over there. I think operational profits we should be able to do this year," Srinivasan said.
During 2013-14, PT TVS sold 19,200 vehicles registering a growth of 3 percent as against 18,600 vehicles sold in the earlier year. While its domestic sales grew by 12 percent, the exports were down 3 percent.
During the year, PT TVS exported 10,300 two wheelers, according to TVS annual report.
During the period, PT TVS successfully made an entry into Myanmar market and plans to expand its presence in new markets like Laos, Cambodia, Malaysia and Turkey.
Srinivasan said currently the manufacturing capacity of all the three plants of TVS Motors put together is at 2.8 million vehicles annually with 85 to 90 percent capacity utilisation.
"As far as expansion is concerned, the company will take a call on how it should be expanded. If everything goes well, as far as by the end of this fiscal we should take a decision as far as capacity is concerned. The expansion would be in the existing plants only", he said.
Srinivasan said currently exports of two wheelers from TVS stood at 3.5 to 4 lakh units per annum to around 55 countries of which majority constitutes Asian and African nations.
He said the exports witnessed a growth of 30 percent during the first five months of the current year and expects similar trend for the rest of the year.
The automaker on Thursday launched its ?Scooty Zest 110? two wheeler in Telangana and Andhra Pradesh markets.
