India’s TVS Motor drives into Central America
One of India’s biggest motor-vehicle companies, TVS Motor Company Limited last week entered into a distribution agreement with Guatemala’s Masesa (Mayor Servicios Socieda Anonima) for distribution of two-wheelers and three-wheelers in Central America.
Masesa, which will handle marketing and distribution, is expected to create as many as 500 outlets for sales, service and spare parts for TVS vehicles during the next year.
Another Indian company, Bajaj Group, currently supplies both three-wheel and two wheel vehicles in the region.
Low-income markets, such as Guatemala, Honduras, El Salvador and Nicaragua are the main opportunity for three-wheelers, including TVS’ King DLX, powered by a 200 cc 4-stroke single cylinder air-cooled Ignition engine.
The TVS-Masesa agreement includes Costa Rica.
In a regional market with extensive competition for two-wheel vehicles, TVS and Masesa will initially offer options, ranging from 110-cc scooters to motorcycles with engine capacity of 200 cc.
TVS last year earned $67 million on sales of $1,9 billion.