Slowdown in two-wheelers only a temporary phase, says P Srinivasavaradhan of TVS Srichakra

TVS Group's tyre-manufacturing arm, TVS Srichakra, has rolled out a new brand called 'TVS Eurogrip', in a bid to boost its export portfolio as well as aftermarket sales amidst two-wheeler slowdown.

P Srinivasavaradhan, President of TVS Srichakra, spoke to CNBC-TV18 spoke to CNBC-TV18 about the slowdown in the sector.

On the growth front, Srinivasavaradhan said, “If you see in the global arena, there is a factor called penetration; penetration is the number of two-wheelers that a country has vis-à-vis the population. India is one of the fastest growing economies in the world. The second aspect is if you take a country like Indonesia, the penetration level of the two-wheelers against the population is very high. Statistics very clearly indicate that the penetration level in India, especially for the two-wheelers, is half that of Indonesia or even less. So it gives you room for a lot of growth."

“If you take away this year and consider the previous 10 years, the compounded annual growth rate (CAGR) of the two-wheelers has been substantially higher with a very high double-digit,” Srinivasavaradhan added.

Speaking about TVS Eurogrip, he said, “We feel this relaunch is going to improve our credibility in the minds of the customer. We would like to emphasize that the relaunch is not for countering for this kind of a temporary slide, all our strategies are long term strategies. So, when we are relaunching this brand, this is for the future years to come.”

“This brand will not only meet the existing demands of the new age customers but also help him to come up with a product which he is going to enjoy in his riding,” he added.