Just last month, we got you exclusive news about BMW Motorrad and TVS Motor being in advanced talks over a possible 2-wheeler collaboration (HERE). BMW Motorrad and TVS Motor Company have signed a long term co-operative agreement (no duration declared), where both will join forces to develop and produce new motorcycles under 500cc in engine capacity. The co-operation will result in both companies selling their own derivatives through their own distribution channels in India and abroad. Yes, the sub-500cc BMW bike will be sold in India through BMW’s own dealerships, priced at a premium over TVS’ offering.
The sub-500cc motorcycle is being targeted at emerging markets like Asia, where lower capacity machines are in popular demand. BMW Motorrad will not compromise on their lower capacity motorcycles, which it will completely engineer in Germany. The upcoming BMW motorcycles will stay true to the BMW name, offering the same level of quality and premium appeal offered by its flagship products like the S1000R. The current BMW Motorrad range will not be touched in India and will continue to be sold via the CBU route. BMW has no plans to locally manufacture its high end bikes which will continue to be produced in Berlin.
BMW Motorrad will do the engineering and design of the sub-500cc motorcycles, while TVS will be responsible for manufacturing it in two styles, one for BMW and one for TVS. TVS will bear manufacturing costs while BMW will bear engineering costs (testing, design, etc in Germany). This tie-up will help TVS enter in the 250cc – 500cc segment. The alliance is a joint technical co-operation and manufacturing with no equity partnership from either parties. TVS will invest €20 million (around Rs. 142 crores) and the first product will come in 2015. The products will be manufactured at TVS’ current plant in Mysore or Hosur.
BMW Motorrad is one of the leading 2-wheeler companies in the world and is celebrating its 90th anniversary this year. Currently BMW Motorrad has 19 motorcycles and scooters in its portfolio, ranging from 650cc to 1600cc. This will enable BMW Motorrad to enter new segments, helping them boost volumes against its key rivals. This is not the first time an international motorcycle manufacturer has tied up with an Indian 2-wheeler company. Earlier examples of such collaborations include Hero and Honda, TVS and Suzuki and lately Bajaj Auto and KTM. If the TVS-BMW tie-up takes the right direction, then enthusiasts will be overjoyed with performance motorcycles at affordable prices.