The Asian manufacturer aims to acquire 25 percent of the USD 250 million Central American market.
TVS Motor recently announced its plans to enter the Central American market. This entry will be aided by a partnership with MASESA (Mayor Servicios Socieda Anonima), a 17-year old company based out of Guatemala that is a leader in distribution and sales of two-wheelers in Central America. This expansion is a module in TVS’ international incursion of expanding its presence in Central America, Latin America, South East Asia and the Middle East.
According to the partnership, TVS would develop region-specific motorcycles, manufacture its existing lineup and ship out both these variants to American shores. MASESA, on the other hand, would handle TVS’ marketing, distribution and sales. It will even act as the after sales service provider and distributor of spare parts for the Asian company in the western market.
TVS would be the second Asian two-wheeler manufacturer after Bajaj Auto to enter the western market. Abundance in demand has influenced the Asian firm to expand its international network in five specific countries namely Guatemala, Honduras, El Salvador, Costa Rica and Nicaragua. These countries collectively hold half a million two-wheeler market in volume, leading to a revenue of USD 250 million, in which TVS aims to acquire 25 percent of the total market in the next three years.
Central America would witness the inauguration of 500 – 600 exclusive TVS outlets in the forthcoming 12 months. As per reports, TVS is said to export 100cc scooters like the Zest and Wego, motorcycles of 100cc-125cc, for instance, the Sport and the Pheonix and the variants of the Apache up to 200cc from its Asian plant. The home plant will also export the three-wheeler TVS King DLX. It is believed that the Indonesian plant would also ship out two models (MAX 125 and Neo 110) to American shores. If sales figures are positive, the South Asia based company will be looking to open up another workshop in Central America soon.
TVS will not be the only Asian manufacturer to set eyes on global market share. Recently, Hero MotoCorp announced their plan to penetrate the Brazillian and Mexican markets by March 2019. But with the huge local network of MASESA, TVS is expected to garner a healthy share in the two-wheeler segment, quite possibly be the quickest among its Asian counterparts in acquiring that. However, TVS has to compete with Honda as the CBR maker enjoys majority market share and Asia is the only country where Honda 2-wheelers isn’t on the numero uno position.
TVS Central America
– TVS to enter Central American markets
– The Asian company partners with MASESA for marketing, sales and after sales service
– TVS is believed to export scooters and motorcycles up to 200cc
– The Asian firm aims to open up a manufacturing plant in Central America