BMW Signs Partnership with TVS India


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BMW Motorrad has announced that it has signed a long-term cooperation agreement with TVS Motor Company to enter the below-500cc motorcycle segment in India.

The various stages through to the finished serial production motorcycle will be planned by both partners, but implemented with different focus areas on each side. The cooperation agreement involves the two companies each offering their own vehicle derivatives, which will be sold through their own distribution channels in India and across the globe. Both contractual partners commented on the future cooperative venture at the press conference held in Chennai.

Stephan Schaller, president, BMW Motorrad, said, "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."

Venu Srinivasan, chairman, TVS Motor Company, said, “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."

BMW Motorrad signs partnership with TVS | News | Autocar India
 
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The products will come out sometime in 2015.

Pointers from the press conference:
BMW sold 117,000 motorcycles worldwide last year, its best performance yet.
BMW sells motorcycles in 100 countries and is a market leader in 13 of them.
Currently BMW has 19 products in the 650-1,600cc categories with engines of 1,2,4 and 6 cylinder types.
BMW’s entry below the 500cc category is mainly for markets in Asia and South America.
Various types of motorcycles are being considered in the long term offering stability, ability and performance figures that BMW Motorrad is known for.
TVS is investing 20 million Euros in India while BMW is not forthcoming on the investment plans. It will take care of all the testing and development costs of the bikes which will be executed in Germany.
The companies are not discussing the categories under which the motorcycles will be classified under. BMW have categories such as tourer, urban mobility, roadster, sport, etc.


Read more: TVS announced tie up with BMW Motorrad on low capacity bikes
 
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TVS MOTORS-BMW MOTORRAD ALLIANCE’S FIRST PRODUCT TO BE A 250CC MOTORCYCLE

Indian two and three wheeler major TVS Motors has tied up with German motorcycle maker BMW Motorrad, to build small capacity motorcycles with engines measuring under 650cc. The first motorcycle from this alliance is expected to displace 250cc, according to a report carried by Overdrive. Apparently, TVS Racing, the racing arm of TVS Motors, has already kick started development of the 250cc motorcycle. Currently, BMW’s lowest displacement motorcycle displaces 650cc while TVS Motors’ highest capacity motorcycle, the Apache RTR 180, displaces 180cc. So, the space that exists between 180cc and 650cc is where the TVS-BMW Motorrad range of jointly developed motorcycle are expected to be positioned in.

With this emerging buzz, it remains to be seen whether the 200cc+ TVS Apache’s development is on schedule as TVS Motors had previously announced plans of launching a 200cc+ motorcycle for the Indian market in 2014. As the BMW-TVS 250cc motorcycle is expected to be launched in 2014, we’re wondering if the larger engined TVS Apache will have BMW engineering. Notably, the TVS Motors-BMW Motorrad motorcycle making alliance is expected to take the route that the Bajaj-KTM partnership has taken. While BMW Motorrad is expected to provide cutting edge motorcycle technology to TVS Motors, the latter is expected to use its low cost-high quality manufacturing expertise and local sourcing skills to build cost competitive motorcycles.

The motorcycles are expected to be sold separately by BMW Motorrad and TVS Motors under their respective banners. While TVS Motors could focus on the Indian market and the other emerging markets, BMW Motorrad is expected to take on the likes of KTM in Europe. Notably, KTM’s small capacity made-in-India Duke 125 and 200 range of motorcycles have propelled the Austrian motorcycle maker to the top of the heap in Europe. With the help of TVS Motors, BMW Motorrad is expected to emulate KTM’s success in Europe and other developed motorcycle markets across the globe.

From KTM-Bajaj to Ducati, from Honda to BMW-TVS, motorcycle makers across the globe are betting big on the sub 650cc motorcycle space to attract younger motorcycles buyers in developed and developing markets. The smaller capacity motorcycles are not just more fuel efficient than liter class superbikes but are also priced much lower even as they offer similar thrills that only two wheeled motoring can.

Rumour: TVS Motors-BMW Motorrad alliance's first product to be a 250cc motorcycle - Indian Cars Bikes : Indian Cars Bikes
 

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