TVS Joins Hands With BMW Motorrad

The much-awaited agreement between TVS Motor Company and BMW Motorrad has finally been announced. The aim of the cooperation is for the two companies to join forces to develop a new series of motorcycles that will cater to the segment below 500 cubic centimetres, a press release by TVS Motor said.

The various stages through to the finished serial production motorcycle will be planned by both partners but implemented with different focus areas on each side, leveraging the strengths of both companies. The cooperation agreement involves the two companies offering their own vehicle derivatives, which will be sold through their respective distribution channels in India and across the globe.

FY13 had been extremely sluggish for TVS following intense competitive pressures and macroeconomic factors. TVS lost its third position in the Indian two-wheeler market to Honda. The company saw a volume decline of 7.55% in FY13 over the previous year.

This collaboration will help TVS in improving its market standing significantly through the delivery of a new series of products and by offering customers high-end technology. It will place TVS in a better position to tackle competition from players like Hero, Bajaj and Honda, which have been pacing ahead.

The announcement was expected by investors as the company had scheduled a press meet for 3 pm today (April 8, 2013). The shares of TVS were higher by 9.93% today at Rs 39.85 per share at the close of day's trades.