TVS Motor Company and BMW Motorrad have signed a major technology agreement, under which the companies will develop sub-500cc bikes. Both companies will jointly produce and sell the new motorcycles in India and global market.
BMW does not have a motorcycle under 500cc – currently the G 650GS is the smallest capacity motorcycle for the German brand. On the other hand, TVS sells mostly commuter motorcycles and this venture will allow them entry in the premium motorcycles segment.
TVS Motor Company will be investing €20 million (Rs 142 crore) as a part of this agreement. TVS will be producing two styles of motorcycles, one style for BMW which will be sold globally and other one for TVS which will be sold in India. The first motorcycle is expected to launched in 2015.
"In view of changing motorcycle markets, demographic developments and increasing environmental demands we are expanding our product range so as to tap into fresh growth potential. We have a highly expert and experienced partner in the TVS Motor Company. This means that in future we will be able to offer vehicles in smaller capacity classes in addition to the BMW Motorrad core segments. Various types of motorcycle are conceivable. They will meet the expectations of a BMW motorcycle in terms of riding fun as well as setting a new benchmark when it comes to stability, agility and performance figures. I regard this long-term cooperation as an important step along the road to profitable, sustainable growth." said Stephan Schaller, president, BMW Motorrad.
"With BMW Motorrad, we see an ideal long-term strategic partner who shares our core values: focus on quality, engineering prowess, innovation and customer satisfaction. We intend to leverage each other’s strengths to deliver a new series of products offering cutting edge technology for our customers." said Venu Srinivasan, chairman, TVS Motor Company.