Almost after a year of announcing its cooperation with German auto giant BMW, TVS Motor Company has on Monday officially announced its long-term agreement with BMW Motorrrad, an integral part of BMW group, to design, develop and manufacture a range of premium motorcycles with below
500 cc capacities in India. The products will be rolled out sometime in 2015 and the same will be manufactured in one of the TVS plants in India, said Venu Srinivasan, chairman and managing director, TVS Motor Company.
As part of the agreement, TVS will make motorcycles for both itself and BMW in technical collaboration with the latter and will invest 20 million euros for the same. There are two different platform one for TVS and another for BMW. While TVS will make products for both, however, both will have their own range of products and will market them in India and aborad under their own brand names through respective marketing initiatives/network, Srinivasan pointed out.
We have an established marketing/distribution set up in India and in abroad. BMW will establish its own network too in India to sell its range of products, including global ranges in India, he said.
He said: It is a technical collaboration and TVS dont have to pay any royalty. Both have the right to sell products under respective brands, both in India and abroad. However, TVS will make products as per BMW specifics for the German auto giant.
It is too early to comment on the products specific, Srinivasan said, he, however, hinted that there is a huge market in the 250 cc category which is not penetrated. What I can say at this point of time that we will make motorcycles below 500 cc category and there is no equity participation by the latter. TVS will make investments in India while BMW will bear the cost for its design in German and the products will be made one of the TVS plants in India.
BMW sees TVS as a valued and long-term partner to source products less than 500 cc category in a more cost effective manner. It is the beginning of a new era for both the partners and we see win-win situation. We see TVS as a quality manufacturer with engineering capabilities and can bring out products with quality, durability, stability in a cost effective manner to ensure road to profitable, sustainable growth, said Stephan Schaller, President, BMW Motorrad.