TVS Motor scales down investment plans
India's third-largest two-wheeler manufacturer, TVS Motor Company Ltd. is scaling down its investment plans in India, owing to weaker demand and tight availability of consumer finance.
TVS, which was earlier planning to invest about Rs 1 billion per annum on expansion, will now only invest about Rs 750 million per year for the next two years. 'We have seen low growth and will only invest for new models and R&D projects now,' said Venu Srinivasan, Chairman and Managing Director, TVS Motor. 'There is no significant investment in capacity. Given the turbulent conditions, we would trim our investments,' he added.
TVS Motor had recorded a 19 percent increase in total two-wheeler sales in September this year, but the company expects growth to slow down in the near future, primarily due to lack of availability of finance. 'We don't expect improvements till the end of 2009, as the global economy is slowing down. The crisis in the west is affecting us here, nobody is really willing to lend,' said Srinivasan.
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