TVS Motor Company has roped in former Bajaj Auto's dealer in Central America for expansion in the region. The company expects around Rs 500 crore from Central America over the next three years.
Sudarshan Venu, joint managing director, TVS, said the company has tied up with Masesa, a large group in Central America, for distribution of two-wheelers and three-wheelers in Guatemala, Honduras, El Salvador, Costa Rica, and Nicaragua.
This will be one of the largest big-bang forays for TVS outside India, said Venu. TVS caters to more than 60 countries.
A total of 500–600 exclusive TVS outlets will be opened in Central America over the next 12 months, he said.
Masesa had been representing Bajaj in the region.
The two-wheeler market size in Central America is nearly half a million units per year. The fragmented market is dominated mostly by Chinese players. The market size is close to $250 million annually.
TVS targets to capture 25 per cent of the market share and aims for revenue of Rs 500 crore in the next three years. “We expect the venture to be profitable from day one,” says Venu.
He adds the product portfolio will be up to 200cc. The company expects large volumes to come from 100-125cc segments.