Chennai-headquartered TVS Motor will invest Rs 500 crore into its operations this year, launch a high-powered motorcycle and a scooter, besides developing a new generation engine, said a report on Monday.

The company's capital expenditure earmarked for this year is higher than previous years as it gears up to build on its strengths, which is scooters. It will also further push its partnership with German giant BMW for premium motorcycles, the report said.

It said that besides the new launches, the company's increased spend will encompass boosting plant capacity at its three locations. TVS, which surpassed Bajaj Auto in two-wheeler sales last year to become the third biggest two-wheeler company in India, will thus increase two-wheeler capacity to nearly 4.5 million from 3.5 million at present.

The company's average spend used to be in the region of Rs 300-400 crore as capital expenditure (capex) every year, Moneycontrol said. Only three years ago, its capex was just Rs 250 crore. A TVS spokesperson declined to provide details of new product-related plans of the company but confirmed that the company will spend Rs 500 crore this year.

A premium motorcycle (to be called Apache RR or Akula) is proposed to be developed jointly with BMW, and will go into production later this year, the report said. This is expected to be the most powerful and expensive product from the TVS stable expected to be priced between Rs 1.25-1.5 lakh.

Among the events lined up this year is the design and development of new generation concept engine as well as design, development and production of a new engine for international business.

"The company has a strategic partnership with BMW Motorrad to develop and manufacture sub-500 cc bikes both for domestic and global markets. The BMW G310R is the first motorcycle to be manufactured under this partnership and manufacturing and exports of this motorcycle have commenced. The company will launch their own motorcycle based on this common platform in 2017-18," stated TVS Motors.

Total two-wheeler sales of TVS Motor registered 11.8 percent growth for the period ending June 30, 2017, over the corresponding period of 2016. Year-on-year sales rose from 240,236 units in June 2016 to 268,638 units in June 2017. Domestic two-wheeler sales grew 10.4 percent, rising from 207,012 units in June 2016 to 228,518 units in June 2017.

Scooter sales increased 33.8 percent from 67,590 units in June 2016 to 90,448 units in June 2017. Motorcycles grew 17.4 percent from 95,542 units in June 2016 to 112,146 units in June 2017.