South Indian two wheeler manufacturer TVS has joined hands with BMW Motorrad to jointly develop small bikes. The joint venture could change the fortunes of TVS which has been losing its share in the market to competitors Honda and Yamaha.
With the new joint venture, TVS will get BMW technology to develop bikes which has been lacking a much needed revamping. The TVS product line has been getting older with bikes including Apache, Jive, Wego etc.
"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. He also added that the TVS bikes with BMW technology would be launched by 2015. The tie up will also give the German automobile manufacturer a stronghold in the world’s second largest two wheeler market.
BMW Motorrad has been largely depending upon western markets such as the United States, Germany, France and China for majority of its sales. TVS and BMW Motorrad will develop and produce a series of motorcycles in the sub-500 cubic centimeter segment, TVS said in a press release. However, each company will sell individual versions of the bikes through their own dealerships.
The TVS revealed that the company will invest 20 million euros in the joint venture. BMW Motorrad President Stephan Schaller said the German manufacturer will use the partnership with TVS to develop small, less powerful motorcycles, however he declined to provide details of the company’s investment.
Posted by Cyril