TVS and BMW are likely to make an announcement on their collaboration on April 8. The deal may see BMW sharing their technological expertise with the Chennai based manufacturer and also possibly using the Chennai facility for joint manufacturing of some selected high-end motorcycles.
“The company is in talks with German Auto-maker, BMW's Motorcycle Division, BMW Motorrad for a technology tie up and that the Company will keep the exchanges informed once finality is reached in this regard,” TVS Motor Company said in a regulatory filing.
TVS has been losing in market share for last few months. With this development, the company has a good opportunity to bounce back and give tough competition to market leaders like Hero MotoCorp, Honda and Bajaj Auto. The company may use BMW’s expertise to get into premium motorcycles segment in India that has seen good growth in recent times.
On the other hand, BMW may use TVS’s dealership network to sell their motorcycles and also use their facility to assemble their high-end motorcycles that will help them cut costs and improve sales.