During the period it has posted a turnover of Rs 394 crore (Rs 310 crore in the corresponding period of the previous year) and in number terms sold 2,16,000 vehicles (1,80,000 vehicles) registering a 20 per cent increase. In July 1998 the company sold 61,700 vehicles, the highest ever sales in a month in the company's history.

This was announced by chairman and managing director Venu Srinivasan at the company's 15th annual general meeting (AGM). He hoped the company will be able to maintain the trend in the forthcoming months too. Speaking on the industry scenario, he said efforts were on by manufacturers to abide by the stringent emission norms. He said the company's new four stroke scooter and mobike `Shogun' complied with the Year 2000 norms while the other products including mopeds will follow suit once catalytic converters were fitted. He also said that by year 2004 production of two-stroke models will be phased out and replaced by four-stroke models. The company, he added, had entered into a license agreement with its collaborators, Suzuki Motor Corporation, for transfer of four-stroke motorbike technology.

He also sought to assuage members' concern on the utility of the existing product line once two-wheeler production was stopped by saying that the product line will more or less be unchanged and the change over will entail an expenditure of only Rs 25 crore.

The scooter project at Mysore, Srinivasan said, will commence production from September and the product launched in Delhi on October 1, 1998. The plant which has an initial capacity of 1,50,000 scooters per annum can produce up to 3,50,000 vehicles with an additional investment of Rs 55 crore, he added.