TVS and BMW Motorrad sign technology sharing agreement: To develop new sub-500cc motorcycles

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TVS Motors and German BMW Motorrad have signed an agreement for long term cooperation and technology sharing. The primary aim of the agreement is to jointly work towards the development of a 500cc motorcycle which will be meant for both Indian and international market.

Surprisingly, BMW does not wish to share the sales and service network of TV Motor Company in lieu of the technology they’ll be sharing with the Indian two-wheeler maker. The long term cooperation agreement essentially aims at the joint development and production of a new series of motorcycle that’ll cater to the segment below 500cc, both in India and worldwide. The TVS’ version of the new bike should be able to hit our markets by 2015.

The development will not be constrained only to a single 500cc motorcycle. instead, a series of sub-500 motorcycles will be developed. Each company, however, will sell individual versions of the bikes through their own distribution channels.

Both the companies will have their own iterations of the new bike. As goes without saying, the TVS version of the bike will be priced lower and will cater primarily to the Indian market. The BMW Motorrad version of the bike, however, will be priced at a premium and will be sold in markets across the world.

BMW have refused the possibility of sharing TVS Motor Company’s facility for the assembly of its current bikes in India. it is a possibility in the future though. Also, the German bike maker has said that there is no question of using low-cost techniques to develop the new bike. The new bike will completely comply with BMW brand ethos and will be a very capable bike for the segment.

The various stages through to the finished serial production will be planned by both partners but implemented with different focus areas on each side leveraging the strengths of both companies.

“We intend to leverage each other’s strengths to deliver a new series of products offering cutting-edge technology for our customers,” TVS Chairman Venu Srinivasan 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 for our customers,”   he added.

TVS will invest close to 140 crore rupees in the tie-up. There isn’t any clarity on BMW’s investment in the tie-up though.

Stephan Schaller, president of BMW Motorrad said “In view of changing motorcycle market demographic development and increasing environmental demand, we are extending our product range so as to tap into fresh growth potential. We have a highly expert and experienced partner in 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 motorcycles are conceivable. They will meet the expectations of a BMW motorcycle in terms of riding fun as well as setting a new benchmarks 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”

Both the versions of the new 500cc bike will be available in India. BMW will sell the bike under their brand name and TVS under their own.

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