TVS Motor Company has shown a 12.7 per cent decline in the sale of two wheelers in November, 2008 at 98,402 units compared with 112,766 units in the corresponding period last year. The company, in a statement stated, "General inflationary trends, liquidity crunch and the continuing adverse impact of high interest rates with restricted availability of retail finances affected sales."
However, on a more positive note, the exports of the company have shown the highest ever growth, with sales doubling, as compared to the same period of the previous year. It has exported 20,911 units in November 2008 compared with 10,408 units in the same month of the previous year.
In an effort to boost sales, the company has entered into an agreement with IndusInd Bank to provide inventory funding to dealers of TVS Motor Company. This tie-up enables TVS Motor Company to strengthen the distribution channel and enhance the working capital for the dealers. This facility is in addition to a similar arrangement with ICICI Bank.