India’s third largest two wheeler manufacturer, TVS Motor Company, has reported 16.04 per cent fall in sales at Rs 3,290 crore for the year ended March 2008.

The Net profit of the company stands at Rs 32 whereas Net profit of the company was Rs 67 crore last year.

 During the year, motorcycle sales were down by 33.91 per cent. The company has sold 6.10 lakh vehicles against 9.23 lakh vehicles over the previous period.

The company attributed the fall in sales to high interest rates and stringent norms exercised by financiers.

Other than this, TVS completed its product portfolio with the launch of TVS Flame this year. It also entered the three-wheeler segment with the launch of TVS King.

The year marked the commencement of commercial production at its Nalagarh plant in Himachal Pradesh.

Though the company couldn’t do well with the sales of its vehicles in India, it immensely saw a growth in the export front by 32 per cent compared to 28 per cent in the previous year, recording sales of 136,000 vehicles compared to 103,000 vehicles in the last year.

The company also commenced commercial production at Karawang near Jakarta in Indonesia and successfully launched TVS Neo, the bebek, which is exclusively developed for the Indonesian market, by its subsidiary PT TVS Motor Company.