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EXCLUSIVE! BMW to link up with TVS via its Husqvarna brand? Page - 3| Zigwheels.com

Great !!! Hope it comes true and TVS shares go sky high as well

Dont really find whats in it for TVS, what i mean to say is, TVS doesn't need any partner, they have enough experience on the race track and a very capable R & D team to do any kind of innovation necessary.
TVS shouldn't waste time for stuff like these, they should be launching products!!!
Although, if TVS launches a separate ASC for Husqvarnaand premium TVS products, it would be quite nice
An ASC which should not suck like the present ones.

hey guys... all those who say that TVS has nothing much to gain ....plz take a deep breath and think with a broader perspective about overall two-wheeler scene in india (okay you can skip the deep breath part).

here's what i think-
the major players in indian two-wheeler market are- bajaj, tvs, hero and yamaha, honda, suzuki. so basically there are two categories- indian companies and japs.

now what has happened is japs recently recognized the indian market potential and the benifit of making india as a base also probably. so they started breaking there existing tie-ups with indian companies and entered the market on their own. they have too much financial and technical might to take on and dethrone the indian companies.

now obviously most of the indian companies were not ready for this - they did not have the technical r&d strength to develop better products at a faster pace. so they devised a strategy- bring in a partner, who is not japanese, who does not have global presence like japs, who does not have the intentions of ruling world two wheeler market, who needs money, who is not very keen on competing in non-premium bike category or not very keen on indian market, -- yet is technically capable of taking on japs, will help in developing good products at a faster pace.

so give him what he wants and he gives us what we want and we will not compete with each other in near future.

so bajaj went to ktm, hero to erik buell and may be tvs to huqsvarna.

i may be wrong. but i may be right.

^^ are you trying to say that riding in night with headlights 'OFF' and only pilot lights 'ON' is a good thing.

here's what i think-
the major players in indian two-wheeler market are- bajaj, tvs, hero and yamaha, honda, suzuki. so basically there are two categories- indian companies and japs.

I think mahindra is also in the pipe line to be a major 2wheeler player in the Indian Market.

Dont really find whats in it for TVS, what i mean to say is, TVS doesn't need any partner, they have enough experience on the race track and a very capable R & D team to do any kind of innovation necessary.

here's what i think-
the major players in indian two-wheeler market are- bajaj, tvs, hero and yamaha, honda, suzuki. so basically there are two categories- indian companies and japs.
...
so give him what he wants and he gives us what we want and we will not compete with each other in near future.

so bajaj went to ktm, hero to erik buell and may be tvs to huqsvarna.

i may be wrong. but i may be right.

Bajaj and Hero both went to their respective partners because both of them needed some new pathbraking technology and i'am glad bajaj found it. But both hthese guys had LOADS of money.
TVS does not exactly require new tech. they have it, they can make more of it. TVS doesn't have the kind of money Bajaj and Hero have(just a rough calculation). TVS' one year profits are less than bajaj 1/2 month profits...

NEW DELHI -- TVS Motor Co. is in talks with BMW AG's motorcycle division for a possible technological alliance, a move that may help the Indian company in developing higher powered two-wheelers to compete with local rivals Hero MotoCorp Ltd. and Bajaj Auto Ltd. as well as Japan's Yamaha Motor Co. and Honda Motor Co.

"We will share more details on the nature of the talks in due course," Venu Srinivasan, chairman of Chennai, south India-based TVS, said by phone on Monday.

A technological alliance is key for TVS to expand its product portfolio and arrest dwindling market share. TVS lost its position as the third-biggest scooter and motorcycle maker by sales in the last financial year ended March to Honda's two-wheeler unit in India.

A collaboration will help TVS develop bigger motorcycles and be better equipped for the fast-changing Indian two-wheeler market. Even though two-thirds of motorcycle sales in India are in the entry-level segment -- with engines in the 100-125 cubic centimeter range --the market for bigger motorcycles is expanding rapidly.

Local sales of motorcycles with engines above 125cc rose 17% in the past financial year to 2.99 million units. The growth outpaced a 12% rise in total local sales to 10.1 million motorcycles.

"A pact with BMW will change the fortunes of TVS," said Deepak Jain, an auto analyst at Sharekhan Ltd. "TVS has been stuck with its products, and technology from BMW will help it become a major player in the bigger-motorcycle segment."

Mr. Jain said a possible pact will also help BMW as the German auto maker can utilize TVS's sales network to sell its products in India.

A BMW India spokesman didn't respond to calls.

Shares of TVS rose on the news and at 0647 GMT they were up 6.4% at 38.95 rupees on the Bombay Stock Exchange, where the benchmark index was down 0.8%.

Earlier Monday, the Mint newspaper, citing Mr. Srinivasan, said TVS isn't considering selling any stake to BMW.

If talks with BMW conclude favorably, TVS will join Hero MotoCorp and Bajaj Auto in tying up with global two-wheeler makers to source technology for making larger motorcycles.

Hero MotoCorp had recently signed an agreement with U.S.-based Erik Buell Racing LLC for sourcing engines, while Bajaj Auto uses the technology and sells some products of Austrian bike maker KTM Power Sports AG, in which the Indian company has a 47% stake.

BMW's motorcycle division, BMW Motorrad, sells models under its R and K series and the S 1000 RR superbike in India.

BMW Motorrad's chief, Hendrik von Kuenheim, said in February the company was seeking partnerships with two-wheeler manufacturers in emerging markets, including in India, to locally build its motorcycles or some parts.
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