TVS Motor plans to have common platform in 2-wheeler segment
"Over the next three years, we will simplify the number of parts. We expect to reduce part count by 40 per cent. We currently have multiple platforms across our two-wheelers. We plan to bring that down to 2-3 common platforms," said Venu Srinivasan, Chairman, at the company's AGM.
Platform refers to the core frame and engine over which vehicles are built. A common platform ensures the basic interiors and fixtures remain the same; the exteriors alone will change. "This will reduce fixed costs, improve profitability, durability and quality."
When the part count comes down, suppliers will consolidate, said K.N. Radhakrishnan, CEO of the company. The first quarter profits of the company took a 13 per cent hit at Rs 51 crore. TVS Motor's market position has dropped from third to fourth place.
"The company has had some issues, particularly in motorcycle business. We have had to compete with the number 1 and 2 players on dealerships, geographies and models.