TVS offers compensation of Rs 57 crore to dealers for loss during BSIII vehicle ban

After the ban of sale and registration of two-wheelers compliant with BSIII emission norms from 1st April, 2017, a number of dealers offered heavy discounts to potential buyers. Since the decision was announced on 29th March, 2017, two-wheeler dealers which had its BSIII stock were left only with this option. In lieu of this, TVS Motor India is compensating its dealers who have faced losses by offering hefty discounts. The one-time provision amount totals to Rs 57 crore and the company is acquiring the leftover BSIII stock from the dealers as well. Most of this leftover stock will be exported to countries where BSIII emission norms are still compliant. “The profit for the quarter is net of one-time provision of Rs.57 crores of discounts towards such BS III products sold by the dealers in March 2017.The unsold BSIII stocks are very minimal. However, we are working together with our dealers in getting back the products. A majority of these products will be exported,” the company confirmed in an official statement.

The company recently bagged top honours at the JD Power 2017 India Two-wheeler Initial Quality (2WIQS) Study and Automotive Product Execution and Layout (2WAPEAL) study. The Star City Plus was rated as the best quality product in the commuter segment while the TVS Apache RTR 160 got the best quality title in the premium category. The company is currently working with BMW Motorrad to produce their most powerful motorcycle till date, the Apache RR310S which was earlier speculated to be christened as Akula. While the new Apache RR310S will be a fully-faired motorcycle aimed at the young audience in the country, it's sibling from BMW Motorrad will be a naked motorcycle.

The TVS Apache RR310S will be jointly developed with BMW Motorrad and powered by a new 313 cc engine, mated to a 6-speed gearbox. This engine is expected to generate 32 hp of power and 28 Nm of torque with a claimed fuel efficiency of 36 kmpl. The fully-faired motorcycle will get a twin headlamp cluster with DRLs (Daytime Running Lamps) and LED tail lamp. Safety equipment on the new Apache RR310S may feature ABS (Anti-lock Braking System) with disc brakes at the front as well as the rear. It is expected to be priced around Rs 2.5 lakh, ex-showroom and once launched, the sub-500 cc motorcycle will compete with the likes of the KTM RC390.

TVS Motor Company