TVS Motors has teamed up with German automobile firm BMW’s two-wheeler division — BMW Motorrad — to share technology and develop products below 500cc capacity, which will be marketed across the globe.
The new range of motorcycles will be manufactured at TVS’s Mysore or Hosur plants though the two partners will sell their products separately.
The move is expected to give a much-needed traction to TVS, which has been losing ground to Japanese firms.
TVS chief Venu Srinivasan said the company would benefit by revamping its product line-up and developing models above 250cc.
Stephan Schaller, president of BMW Motorrad, said the tie-up would give the Berlin-based firm an opportunity to tap the demand in developing markets of Asia and South America.
“We will be able to offer vehicles in smaller capacities in addition to the BMW Motorrad core segment,” said Schaller.
The core two-wheeler products of BMW are in the 650-1600cc range. The firm sold over 117,000 motorcycles worldwide in 2012. The company will continue to produce its core products in Berlin.
Srinivasan added that the bikes manufactured by the two firms would be under two different specifications — one under the BMW brand and the other under the TVS brand.
“We have entered into a joint technical cooperation and manufacturing agreement. There will not be an equity participation,” Srinivasan said.
TVS is planning to invest about 20 million euros in the project; BMW has declined to provide the details of its investment. The firms could even have competing products at various price points in India.
The sub 500cc market comprising 100, 125, 150, 200, 250cc models makes up the majority of the local two-wheeler market. The overall market size is around 13 million units at the end of February. The market is dominated by Hero, followed by Bajaj. Honda and TVS are competing for the third spot.
Shares of TVS rose to Rs 42.35 apiece on the BSE following the deal. They closed up 9.93 per cent at Rs 39.85.
The new range of motorcycles will be manufactured at TVS’s Mysore or Hosur plants though the two partners will sell their products separately.
The move is expected to give a much-needed traction to TVS, which has been losing ground to Japanese firms.
TVS chief Venu Srinivasan said the company would benefit by revamping its product line-up and developing models above 250cc.
Stephan Schaller, president of BMW Motorrad, said the tie-up would give the Berlin-based firm an opportunity to tap the demand in developing markets of Asia and South America.
“We will be able to offer vehicles in smaller capacities in addition to the BMW Motorrad core segment,” said Schaller.
The core two-wheeler products of BMW are in the 650-1600cc range. The firm sold over 117,000 motorcycles worldwide in 2012. The company will continue to produce its core products in Berlin.
Srinivasan added that the bikes manufactured by the two firms would be under two different specifications — one under the BMW brand and the other under the TVS brand.
“We have entered into a joint technical cooperation and manufacturing agreement. There will not be an equity participation,” Srinivasan said.
TVS is planning to invest about 20 million euros in the project; BMW has declined to provide the details of its investment. The firms could even have competing products at various price points in India.
The sub 500cc market comprising 100, 125, 150, 200, 250cc models makes up the majority of the local two-wheeler market. The overall market size is around 13 million units at the end of February. The market is dominated by Hero, followed by Bajaj. Honda and TVS are competing for the third spot.
Shares of TVS rose to Rs 42.35 apiece on the BSE following the deal. They closed up 9.93 per cent at Rs 39.85.
