Chennai : Two and three wheeler manufacturer TVS Motor is hoping to sell its liquefied petroleum gas (LPG) fired three wheelers in sizeable numbers to new permit holders in Tamil Nadu.

The Tamil Nadu government has decided to issue 8,000 new autorickshaw permits (3,100 in Chennai and 4,900 in rest of the state) in the first phase.

"We are hoping to get 20 per cent share of the new market that has come up now. However, capacity is the only major constraint for us to cater to the new huge demand that is set to emerge following the issue of new permits," president (Marketing) HS Goindi said.

Chief Minister M Karunanidhi handed over the permits to 10 persons here at the secretariat Thursday. In May this year, the state government had revoked a 12- year ban on issue of new permits to meet the growing need for public transport.

Following that, the government received around 78,000 applications for new permits. The government has decided to issue the same. "It will take time for the permit holders to tie up finance and decide on the model purchase. We are geared to cater to new demand. Most of the Indian states are now issuing new permits which in turn augur well for us," Goindi added.