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Thread: BMW-TVS to enter India with 500cc bike: xBhp News

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    Super Moderator sunilg's Avatar
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    Default BMW-TVS to enter India with 500cc bike: xBhp News

    TEXT: Avinash Noronha/ The Monk


    TVS Motor Company and BMW Motorrad signed a long term Ė cooperation agreement in Chennai on 8th April 2013.




    After months of speculation and awaiting this tie-up, TVS finally announced that it has entered into a technological partnership with BMW to manufacture 500cc and below bikes for the Indian and Global market.

    At present there is no duration for the agreement and the companies will develop motorcycles together as long as it is viable for both the companies. The bikes are expected to be showcased by 2015. Though the Chairman was tight-lipped about what can be expected in terms of model range and targeted segments.




    TVS Chairman Srinivasan mentioned that TVS is already building 250cc motorcycles, while BMW President Schaller spoke about the technological prowess that the Bavarian company has in the larger capacity bikes. It is therefore expected that the bikes that will be developed, will be in the range of 250-500cc. Probably around 400cc.

    In a bid to utilise the strengths of both companies, the motorcycles will be probably designed by BMW and produced in India by TVS. Though the distribution of the two will be through their respective dealers, i.e. TVS will sell around the world in TVS showrooms and BMW through BMW showrooms. The cooperation between the two companies is essentially for technology in the medium capacity motorcycles. Currently, other aspects like sale, distribution etc. is to be completely separate.

    The bikes when developed will be basically of two types. One for BMW and the other for TVS. With BMW selling premium bikes with additional features, while TVS will sell it at a cheaper price. Something akin to the Bajaj-KTM Pulsar 200 and Duke 200. This is good way of cost cutting for the premium brand and technology for the lower end model. KTM plans to do something similar with its off-road range of motorcycles under the Husqvarna, KTM and Husaberg range of motorcycles. The motorcycles will share the same platform but will be differentiated sufficiently to not cannibalise each otherís sales. Currently, development work has not begun. So it will be a big achievement to come out with completely new products within just 2 years.

    TVS Motor Company will be making an investment of around 20 million Euros over the next two years from internal accruals. This investment will be done for the BMW-TVS deal. BMW as policy does not give out figures of their investments. There will be no purchase/sale of stakes in either of the two companies. So TVS will be independent to pursue its plans without any interference from BMW.

    TVS will be manufacturing the motorcycles in India for both themselves and BMW. But the motorcycles will be sold and distributed and badged separately. The volumes that TVS-BMW are aiming for were not revealed.

    BMW went to great pains to explain that the company will ensure quality at all costs. The bikes will not compromise on quality at all and will keep to the reputation that the marque has built. As such, the BMW bikes will continue to be sold at a premium over its competitors.

    BMW had 5 years earlier bought the Husqvarna brand from the Castiglioni family. Since then, they poured in millions of Euros in the brand. They even built an all new R&D facility for the brand. Finally, this January they sold the brand to KTM CEO Stefan Pierer. Husqvarna has motorcycles from 50cc Minicross bikes to 900cc street bikes. With BMW having owned Husky for 5 years, the Bavarian company might already have a foot in the door, when it comes to technological knowhow of smaller capacity bikes, which makes it possible to develop the TVS-BMW bikes in just 2 years.

    Stephan Schaller, President BMW Motorrad -





    "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 -





    "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 otherís strengths to deliver a new series of products offering cutting edge technology for our customers."

    Last edited by The Monk; 04-09-2013 at 03:56 PM.
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    Something similar to the Bajaj+KTM alliance.

    Call it luck or simply coincidence.. but TVS ends up seeming to follow Bajaj.
    So can we get a sub 500 cc R1200GS desi replica in a couple of years..??


    Last edited by payeng; 04-08-2013 at 04:35 PM.

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    Good news for TVS.

    Time to buy TVS stocks
    vikas khera likes this.
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    This has got to be the best news i've heard today... Kanna rendu laddu thinna aaasaaya...

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    So all the rumours were true This is a much needed collaboration for TVS (who has sadly given up on performance segment ) Though it might be long for RTR250 or S250RR to come to market, I am sure it will be worth the wait!
    Last edited by Adarsh_Bk; 04-08-2013 at 04:50 PM.
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    The BMW TVS press meet (Old Fox and The Monk were present there) in a nutshell.


    Mr Schaller - cooperation agreement signed

    Investment to the tune of 20 million euros to be made by TVS from internal accruals over the next two years


    No equity participation


    TVS will make stuff both for BMW worldwide sales and Dom Indian market


    2015 launch of products


    Will be sold through BMW dealer network


    Both brands will be sold simultaneously in both markets through their respective distribution networks.


    No volumes discussed


    Not making cheap bikes. They will be quality stuff. BMW shall not compromise on its quality norms





    Last edited by Old Fox; 04-08-2013 at 05:24 PM.
    calvin, aargee, kantu and 4 others like this.
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    It makes me proud being a TVS fan!
    How about they take up and commercialize the RTR 250FX for the starters please?

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    Quote Originally Posted by payeng View Post
    Something similar to the Bajaj+KTM alliance.

    Call it luck or simply coincidence.. but TVS ends up seeming to follow Bajaj.
    So can we get a sub 500 cc R1200GS desi replica in a couple of years..??

    The KTM success story has definitely rubbed off this deal. What remains to be seen is will BMW leverage TVS in production of its motorcycles in India apart from developing sub 500CC engines?

    I am sure the TVS stocks have gone up post deal and will also be interesting to see how this alliance matures in the coming years.
    pcgamer likes this.
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    Great!!....A way i think adventure motorcycles may enter India. It will take time though. Correct I may be eyeing for a 400-500cc adventure tourer.

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    good news :-)
    i hope to see some boxer twins in a few years perhaps? ;-)
    ◦ ● 4-wheels move the body... 2-wheels move the soul ● ◦

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