Chennai: Two and three-wheeler maker TVS Motor has taken steps to wind up the TVS Motor Company, Europe, the special purpose vehicle (SPV) set up by the company.
The Chennai-based company had incorporated TVS Motor (TVSM) Company, Europe B V and TVS Motor Singapore Pte Ltd to serve as a special purpose vehicles for making and protecting investments made in overseas operations of PT TVS, TVS Motor said in annual report.
Indonesia-based PT TVS Motor Company is the subsidiary of TVS Motor Company.
"Considering the change in the evaluation, the companyhas now initiated steps to voluntarily wind up TVSM Europe, subject to regulatory approvals/consents as may be required, both under Indian/Foreign Laws", it said.
However, it said the TVS Motor Singapore Pte Ltd would continue to hold the investments in PT TVS.
During the period 2014-15, the company made an additional investment of Rs 2.01 crore in the ordinary shares of TVS Motor Singapore Pte. Ltd and the shares were allotted in April 2015, it said.
"After a complete review of the proposed activities through SBDC, it was advised that local manufacturing operations may not be required in China. Hence the board has decided to retain the representative office in China but to close down the operations of SBDC", it said.
PT TVS Motor Company, Indonesia also has plans to introduce a 200 cc sports motorcycle and a new variant of 110cc Dazz scooter with fuel injection system, it said.
In 2014-15, PT TVS sold 23,300 vehicles as against 19,200 vehicles sold in the same period of the previous year. While domestic sales remained flat, exports grew by 40 per cent.
PT TVS continued its focus on exports and exported more than 14,000 units to ASEAN, Middle East and African countries.