TVS, BMW tie up to tap technology, market access
TVS Motor Co Ltd and BMW AG's motorcycle division announced a long-awaited cooperation agreement on Monday in a deal that will see the companies jointly develop motorcycles as TVS looks to stem a slide in its market share.Updated: Apr 08, 2013 23:11 IST
Come January 2015, the first ‘made in India’ BMW bike would roll out from one of the factories of the TVS motor company in Tamil Nadu.
Chennai-based two-wheeler major TVS Motor Co Ltd and BMW Motorrad announced a deal on Monday to jointly develop bikes that will give the Indian automaker access to BMW technology. The bikes are expected to hit the market in 2015.
“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.
First Published: Apr 08, 2013 15:43 IST