India's fourth largest motorcycle manufacturer, TVS Motor Company plans to bring down the production cost of its motorcycles within 3 years by introducing common platforms for all its motorcycles. That is, all motorcycles will have common platforms. Possibly, there would be 2-3 platforms altogether. By this methodology, the officials expect to save a lot of money for the sake of the company.
"Over the next three years, we will simplify the number of parts. We expect to reduce part count by 40 per cent. We currently have multiple platforms across our two-wheelers. We plan to bring that down to 2-3 common platforms. This will reduce fixed costs, improve profitability, durability and quality" said Venu Srinivasan, the Chairman and Managing Director of Sundaram Clayton Ltd and TVS Motor Company.
TVS has been struggling since the foray of Japanese auto giant, Honda Motorcycles and Scooters India, and it caused the consortium to lose its consistent 3rd position in the Indian two wheeler market to Honda. Now the consortium is trying to pay back its rivals.
K.N. Radhakrishnan, the CEO and President of TVS Motor Company who attended in the meeting commented that the new procedure could not only bring the company into huge profits but also save precious time of their labours.
In a common platform, the interiors included of frame, chassis and engine would be the same but the exterior having vivid graphics and designs would be different. And the company has signed a contract with a private firm in China as low cost materials are available there without compromising the quality of items.
Meanwhile Sreenivasan reported that the company would be unveiling new products in every quarter, because the consortium wanted to bring back its market once it had in the country. And as we reported earlier, the all new Phoenix will have its first appearance on 28th September.
For more read about Phoenix Launch
Rate this News :