[JayPrashanth]

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Indian 2 & 3 wheeler maker TVS Motors has just begun production at its assembly plant at Kenya, after concluding trial production of its Star City motorcycle in the newly set up assembly unit. The Star City is the first TVS motorcycle to be assembled in Kenya. While TVS Motors has already been selling its motorcycle and three wheeler range in the Kenyan two wheeler market for the past decade or so, the assembly unit is intended to boost the Indian company's market share in Kenya.



Note: TVS Star City image used as an illustration

Currently, TVS Motors's market share in the Kenyan two wheeler market stands at 27%, a figure that it hopes to boost to 40%, with the commencement of assembly operations. Notably, TVS Motors is the second Indian two wheeler major to set up an assembly facility at Kenya. Weeks ago, Hero MotoCorp made an announcement about its factory in Kenya, a market in which sells a wide range of motorcycles, from the entry level commuter Dawn to the premium Karizma.

TVS Motors has tied up with Car & General, Nairobi, for the distribution of its two wheelers in Kenya, while Abson Motors, Mombasa, will handle distribution duties of TVS three wheelers in the African nation. In Kenya, TVS's motorcycles are sold and serviced through a 75+ dealer network and a 300 strong after sales service network, respectively. TVS has trained 2,500 mechanics to service its motorcycles sold in the Kenyan market.

In the next couple of quarters, the company plans to launch two new products in Kenya. The Indian two wheeler major is looking outward to boost volumes even as its marketshare in the Indian market has been dipping steadily. TVS had tied up with BMW Motarrad to build high end sportsbikes in the sub-500cc category. The first crop of the TVS-BMW motorcycles are expected to be ready for launch in the next couple of years.

Both companies will sell the new range of jointly developed motorcycles under their respective brand names and distribution set-ups. For the Indian two wheeler market, TVS Motors will launch six new products including a three wheeler by the end of 2014. These products will not include those developed under the TVS-BMW collaboration. Both scooters and motorcycles will be among the five new two wheelers that TVS plans to launch in the next 18 months.

Source LiveMint