India's third-biggest motorcycle maker, TVS Motor Co said on Friday its two-wheeler sales in May fell 13.3 per cent from a year earlier, and it expects margins to remain under pressure in the coming months.
TVS Motors sold 108,151 units in May, lower than 124,678 units sold a year ago, the company said in a statement.
"The company expects that the pressure on the margin will continue in the first half of this year, due to high cost of raw material and intense competitive activity," it said.
The company expects pressure on margins to ease after it launches new products in the second half of the year ending March 31, 2008.
Motorcycle sales fell 36.6 per cent to 49,651 units from 78,271 units, but those of scooterettes rose 24 per cent to 25,280 units from 20,396 units, TVS said.
The company said exports rose 15 per cent to 9,849 units.
At 0618 GMT, shares in TVS were up 4.3 per cent in a Mumbai market that had gained 0.9 per cent.