TVS Auto Bangladesh, the local distributor of India’s TVS motorcycle, has planned to raise its market share in Bangladesh to 12 percent from the existing 8 percent within the next eight months The company expects Bangladesh’s two-wheeler market to boom in coming years.
“On average 1lakh motorcycles will be sold every year in Bangladesh. And we hope we will be able to grab 12 percent market share in next eight months,” H S Goindi, vice president (international and domestic business) of TVS Motor India, told a press briefing in Dhaka yesterday, marking the launch of the company’s new motorcycle ‘TVS Flame’ in Bangladesh.
Although car price recently went down here, the demand for motorcycle might be increased due to fuel price hike, Goindi said, hoping that soon the unique featured TVS Flame will be a popular transport in Bangladesh as it can run 65 miles a litre of diesel.
The government recently adjusted diesel price at Tk 55 a litre from Tk 40.
TVS Auto Bangladesh Ltd is a 50:50 joint venture between TVS & Sons India and Rian Motors Ltd of Bangladesh. The company commenced operations in July, 2007. According to the company officials, it sold 7,000 motorcycles of different brands in Bangladesh during the July 2007-July 2008 period.
Along with automobiles, the sales of motorcycle declined since January 2007. Petroleum price hike in July this year came as a fresh blow to the Tk 700 crore two-wheeler industry as the industry had just started showing signs of recovery, industry insiders said.
Bangladesh’s motorcycle market is mainly dominated by Indian brands such as Bazaz, Honda, Hero Honda, and TVS. According to industry insiders, Bazaz is the market leader with 40 percent market shares, followed by Hero Honda’s 35 percent. Chinese made motorcycles dominates rest of the market.
In the present unfavourable market condition, Goindi said Bangladeshi market segment is very important for TVS as the market is growing day by day. He estimated that the sales of motorcycles in Bangladesh would reach around 10lakh in the next 10 years.
TVS Auto Bangladesh has brought variety of products ranging from TVS Victor GL, GX, and GLX to TVS Star, TVS Star Sport, and Ferio-F2 into Bangladesh in the last one year. The company assembles and distributes products in Bangladesh through its own network of approximately 77 sales points.