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TVS hopes to gain market share in three wheeler segment

Chennai, Aug 12 (IANS) Two and three wheeler manufacturer TVS Motor is hoping to sell its liquefied petroleum gas (LPG) fired three wheelers in sizeable numbers to new permit holders in Tamil Nadu.

The state government has decided to issue 8,000 new autorickshaw permits (3,100 in Chennai and 4,900 in rest of the state) in the first phase.

‘We are hoping to get 20 percent share of the new market that has come up now. However, capacity is the only major constraint for us to cater to the new huge demand that is set to emerge following the issue of new permits,’ President (Marketing) H.S. Goindi told IANS.

Chief Minister M. Karunanidhi handed over the permits to 10 persons here at the secretariat Thursday.

In May this year, the state government had revoked a 12- year ban on issue of new permits to meet the growing need for public transport.

Following that, the government received around 78,000 applications for new permits. The government has decided to issue the same.

‘It will take time for the permit holders to tie up finance and decide on the model purchase. We are geared to cater to new demand. Most of the Indian states are now issuing new permits which in turn augurs well for us,’ Goindi added.

In the recent times, TVS Motors has increased its three wheeler sales. Last month the company sold 3,108 units.

Cumulative three wheeler sales for the period April-July 2010 stood at 10,907 units.

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