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TVS Motor reports faster sales growth in August

TVS Motor Company said August sales rose 46% compared to August last year. The growth is faster than what was seen in July, when sales had risen 32% year on year.

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Total sales during August 2014 was 227,482 units. In July, TVS Motor had sold 203,092 units a year ago.

The numbers indicate a pick up in sales ahead of the festival season. They also seem to indicate an uptick in the economy as well, under the new prime minister Narendra Modi.

Growth was led by the domestic market.

Domestic two wheeler sales were up 50% compared to a year ago, rising from 127,095 units in August 2013 to 190,547 units in August 2014.

Including exports, two wheeler sales jumped 47% from 148,469 units recorded in August 2013 to 217,662 units in August 2014. Two wheeler exports were up 27% with sales increasing from 21,374 units in August 2013 to 27,115 units in August 2014.

Total exports grew by 28%, with sales increasing from 27,425 units in the month of August 2013 to 35,074 units in August 2014.

TVS makes a variety of motorcycles, including the RTR 150, and scooters TVS Scooty and Jupiter.

Scooters continued to outperform Motorcycles as a category. Scooters sales of the company grew by 84% increasing from 36,478 units in August 2013 to 67,240 units in August 2014. At the same time, motorcycles sales grew only by 36% increasing from 61,313 units in the month of August 2013 to 83,332 units in August 2014.

TVS’ motorcycle line-up is limited compared to those of its competitors like Yamaha Motors, Bajaj Auto, Hero Motor, and Honda.

Three wheeler sales, which comprise auto-rickshaw sales, saw an increase of 39%, growing from 7,063 units in August 2013 to 9,820 units in August 2014.

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