Having seen KTM,Triumph and a resurgent Ducati eye a move to Asian markets, BMW wants in but without devaluing its brand equity. Using its wholly-owned Italian subsidiary Husqvarna to forge a tie-up with Hosur-based bike maker TVS is one of the tasty possibilities with immense ramifications not just for India but also globally.
Adil Jal Darukhanawala outlines the story which has the makings of a win-win situation for both bike makers and motorcyclists in the region.
The success of Austrian bike maker KTM hasn't gone unnoticed in the European market. Especially by BMW which has been on song for the past few years with its range of superbikes, traditional boxers for road and endurance plus also its tourers and custom bikes. However, the era of large capacity, hyper machines seems limited though very profitable but it will stay concentrated in the developed world with next to no worthwhile movement in the large mass motorcycle markets of the world. Read that as Asia, South America and Africa where motorcycles are first the main means of personal mobility for work and utility plus commuting and then for pleasure and performance.
For BMW, India seems to be the right hunting ground and while many will think Hero MotoCorp would have been the logical first choice, the obvious nameplate which can meet BMW's objectives and turn them into a win-win situation would have to be TVS. The Hosur-based bike, scooter and moped maker (it also makes three-wheeled autorickshaws) is renowned for its engineering and low cost manufacturing skills. If that's not all, it has a penchant for quality which would help tick many boxes in BMW's checklist as to what a potential partner might need to sport and the overall prognosis seems pretty clear, BMW needs TVS more than I think TVS needs BMW! One can term this as an inane expression but there is pretty strong substance to this as will be made clear going ahead.
There have been many visits by BMW top brass to factories across the region and it has paid visits to Bajaj Auto, Hero MotoCorp, TVS and it was the latter which Hendrik von Kuenheim, president of BMW Motorrad, spoke glowingly about. "TVS Motor were by far the most professional, with the cleanest production line in India - you could have eaten off that floor! They build their engins in a clean room like they have in Formula One where the room is pressurised so that it is dust free, all for a small 125cc engine that is built 2,000,000 times a year." It didn't end there for von Kuenheim continued heaping even mor praise of all what he saw and felt and recognised: "They are very committed, and very good. Some of them even speak German!"
The writing is clearly on the wall and though BMW has spoken of its intent, TVS has as yet to say anything on this matter which is clearly developing even as we speak. That some of the TVS lot speak German is a good starting point for BMW but one giveaway is already clear - after Bajaj Auto inked the deal with KTM, the racing department of TVS jettisoned their specially developed motorcycles which had quite a bit of KTM and Engines Engineering in them and the latest bikes are all Husqvarnas in the blue, white and black livery of the Hosur-based bike maker. Coincidence or happenstance? There's more than what is apparent at the moment and a tie-up with BMW could mean a terrific boost to the fortunes of TVS, India's fourth largest two-wheeler player. On top of that it can play a role via some of its best dealers across the country to set up a premium sales channel to handle BMW's CBU bike sales and nullify some of the bragging rights which its rivals have at their disposal. Also given its innate ability, there shouldn't be any reason why TVS can't come up with its own rivals to the Duke and the Pulsar should it have the technological might of BMW by its side.
