BMW Motorrad joins hands with TVS for strengthening its Indian presence

author image CarTrade Editorial Team
Tuesday 09 April 2013, 11:40 AM

BMW Motorrad, the two-wheeler arm of world renowned German luxury automotive marque BMW, has joined hands with the Indian firm- TVS Motor Company for developing a new range of motorcycles. The two companies have signed an agreement to produce bikes with engine displacement less than 500 cc for the domestic market.

At present, BMW Motorrad has 19 high end premium bikes and scooter models with engine sizes falling in the range between 650 cc and 1,600 cc. The German two-wheeler maker has a product portfolio with offerings in the conventional sport, roadster, tour, enduro and urban-mobility categories. With its partnership with TVS Motor Company, BMW Motorrad aspires to sell its new models both in India and overseas markets.

TVS Motor Co., India’s fourth largest two-wheeler maker, is expected to benefit a lot from the new alliance. The company had lost its position as the country’s no. 3 bike maker in terms of market share during the 2011-12 financial year. At present, TVS ranks fourth behind the likes of Hero MotoCorp, Bajaj Auto Limited and Honda Motorcycle and Scooter India Private Limited.

Experts believe that this new partnership could provide TVS Motor Co. access to the German auto maker’s cutting edge technology, which can be used for developing new models and platforms. Further, the collaboration could allow the Indian two-wheeler maker to up the ante against its arch rivals like Hero MotoCorp, Bajaj, Honda, Yamaha and Suzuki in the country.

Speaking on the company’s association with TVS, Stephan Schaller, President, BMW Motorrad, was quoted as saying, “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.” He further added that the long term partnership agreement with TVS is “an important step (for BMW) along the road to profitable, sustainable growth.”

Joining hands with TVS will allow BMW Motorrad to establish a decent foothold in India’s surging two-wheeler market, which is world’s second largest at the moment. The partnership would also provide German auto maker with the access to TVS Motor’s local manufacturing facilities in the country. The newly formed alliance reflects BMW Motorrad’s ambitious plans for the Indian two-wheeler market, for tapping the high potential in emerging markets. India’s growing premium two-wheeler market has attracted a number of high end global auto makers, such as BMW Motorrad, Harley Davidson, Yamaha, Suzuki, Honda, Ducati and Piaggio SpA’s Aprilia. Further, BMW’s car division is the country’s best selling premium brand and its two-wheeler unit seems to be looking at achieving the same feat as well.

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