TVS targets Central American markets with local alliance

TVS Motors is trying to expand its reach into the Central American markets by establishing local alliance with market players in the region. In line with these plans, the Chennai-based two-wheeler manufacturer has announced a strategic alliance with a Central American company called MASESA (Mayor Servicios Socieda Anonima).

MASESA is a distribution company that has managed to establish a comprehensive network in the Central American region. It has 500 exclusive dealerships and 1,100 employees under its umbrella. MASESA claims to sell 65,000 two-wheelers and 5,500 three-wheelers every year, thus bringing in a turnover of around US$ 300 million.

TVS and MASESA will work together to open 500-600 exclusive outlets in the next 12 months, in order to establish a customer reach in the region. The automaker is trying to target five countries in the region - Guatemala, Honduras, El Salvador, Costa Rica and Nicaragua. Through these attempts, TVS is aiming to earn a revenue of Rs. 500 crore in the next three years.

As a part of the agreement with MASESA, TVS will be responsible for developing and manufacturing products for the region, while MASESA will handle the marketing and sales channel, along with service and spare part requirements.

Source: ET