“It is a win-win situation for both companies,” said Stephen Schaller, president, BMW Motorrad. “I regard this long-term cooperation as an important step along the road to profitable, sustainable growth.”
TVS manufacturing facilities will churn out two distinct type of models — one for TVS and the other for BMW (below 500 cc bikes), which will be sold through their independent networks. “We have our marketing network and they have theirs,” said Venu Srinivasan, chairman, TVS.
TVS will be investing €20 million in the tie-up, Srinivasan said. BMW declined to provide its investment details.
The German manufacturer’s technology will give TVS that much needed edge in its product. And for BMW, the deal will expand its portfolio into smaller motorcycles, a space, where it has no presence. “We intend to leverage each other’s strengths to deliver a new series of products offering cutting-edge technology,” said Srinivasan.