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-   -   TVS Motors and BMW Motorrad join hands in partnership for motorcycles below 500 cc (https://www.team-bhp.com/forum/motorbikes/134649-tvs-motors-bmw-motorrad-join-hands-partnership-motorcycles-below-500-cc.html)

TVS Motors is likely to formalise its partnership with BMW Motorrad (the motorcycle division of BMW AG) for a technology tie-up shortly. TVS yesterday confirmed to the BSE that talks are ongoing and that it would inform the stock exchange once things have been finalised. The tie-up would help TVS with technology to make higher capacity motorcycles as currently its most powerful offering is the 180 cc Apache RTR (Bajaj is already developing a 390 cc performance motorcycle).

The partnership when it is formally announced will be an important one for both companies. TVS has been losing market share in the two wheeler segment (slipping to 4th place) despite having competitive offerings in the motorcycle and scooter segments. For BMW Motorrad, a partnership with TVS will allow it to gain a toe-hold in the Indian market and access to TVS' established nationwide dealer base. TVS also has a reputation for quality engineering and is second only to Bajaj in terms of home-grown two wheeler development capability. BMW has been keen to enter the Asian market and was reportedly highly impressed by TVS' production facilities during earlier visits.



BMW of course, is extremely careful about its brand perception and it is very unlikely that the brand will move down market in India. Media reports earlier had strongly hinted that its Husqvarna brand would make an appearance in India. However, just 2 months back, KTM announced that it would acquire all of Husqvarna! (Bajaj owns approximately 48 % of KTM). KTM sold 100,000 motorcycles last year compared to Husqvarna's 10,000 odd units.

TVS is indeed known for its ultra clean production facilities and perfect processes. I'm also highly impressed with the quality of their rides for the last few decades. However, their new offerings do look a bit too plasticky and they are generally hard to differentiate between products from its own stable and other manufacturers. They only have Apache from 150-180cc with the same design which doesn't help.

This partnership sure looks like a fantastic opportunity for TVS to get back to innovation and gain a market share, and comes long after it ended its JV with Suzuki back in the 80s (?). I like TVS and would like to see it shining once again.

Just read this news that TVS Motors is on verge of a Tie-up with BMW for Technology sharing to compete better with Hondas, Heros and Bajaj 's of India.

Interesting competitive Build up in 2 Wheeler Space just like 4 wheelar space.

http://www.firstpost.com/investing/t...up-689820.html

Mods: Please place it in proper thread if required. I placed it here cuz this involved a car-maker in BMW which could mean a larger repercussion in long run.

TVS Motors will partner BMW Motorrad for production of motorcycles below 500 cc. The announcement was made in Chennai today and signifies a much deeper partnership than expected.

The salient points are:

• Long term partnership to develop all new series of motorcycles below 500 cc capacity
• The motorcycles will be sold by BMW Motorrad and TVS separately under their own brandnames in India
• The first bikes are expected to enter the market in 2015

TVS Chairman Venu Srinivasan has said that the partnership would allow both companies to leverage each other's strengths to deliver new cutting-edge products. TVS will be investing 20 million Euros in the partnership. For BMW Motorrad the partnership will allow the company to be able to quickly develop and get the new sub 500 cc motorcycles to market. Importantly, BMW has said that the new bikes would be fun to ride and set benchmarks in terms of stability, agility and performance; attributes that BMW motorcycles are known for.

For TVS which has a production volume of approximately 2 million units a year, the tie-up with BMW couldn’t have come a moment too soon. On offer from BMW will be technology that could spawn a host of new platforms, enabling TVS to enter new market segments. The Halo effect of the tie-up with BMW for TVS's other 2 wheeler brands will also be huge.

And, according to Autocar India, TVS and BMW have joined hands. I do see TVS improving in near future due to this.

Complete article here.

Prima facie this definitely appears to be a win-win for both manufacturers. TVS will benefit from BMW's immense experience and vastly superior resources in product development and the German manufacturer gets a partner with years of knowledge about India and an easy entry into the complicated Indian market.

However the longevity of this tie up remains to be seen. Manufacturers like TVS, M&M, Bajaj etc are fiercely independent and are known not to sell out to their foreign partner whereas somewhere down the line the foreign partner will always try to control the company or part ways. This obviously leads to friction and we have already seen the results of quite a few such alliances and joint ventures.

This is infact some awesome news. I would love, love to see how this progresses. Its a few years away but exciting nonetheless!

But the big question is "Will the new TVS-BMW partnership be as successful as for instance, Hero-Honda?"

BMW with all its technology and years of experience in the motorcycle field, found that lack of market presence, dealership network, immediate indigenous production capabilities in the world's biggest two wheeler market proved to be its Achilles' heal. BMW is now partnering with TVS which has all the above. (Or should i say 'only the above'?)

Theoretically, the companies would be complimenting each other for common good. Will it work out? It might if they can get the product range and the pricing right.

I do not see any good happening for TVS nor for BMW . This is just another flop show . Pricing is the key strategy and I am sure it would not be easy to price a joint venture motorcycle competitively with respect to hero honda or Bajaj .

It's a welcome news from TVS. They've been quiet for a long time now. Hopefully this will spark something new and exciting from them.

But on a related note, doesn't it look like we've gone back in time? All of our three domestic manufacturers now have an official foreign partner for technology, et al. Almost 20-30 years in the industry and they still can't make their own bikes!

This is a good news. Was wondering how long can the Apache engine be tuned and facelifts help :D

Exactly my emotions jkdas. Looks like TVS has run out of ideas like some of our friends in bollywood. :D

Jokes apart, I think the pricing will play a major role in deciding the fate of this venture. Hero-Honda worked for many years because of the sheer number of sales they did and so both companies got decent profits to hang in there at the start.

Here if they price it high they have a situation, and if they price it low, wondering how will they be able to maintain the quality of BMW. Hope they don't spoil their brand image by giving us something cheap. After all BMW is always looked at as a premium brand.

TVS' alliance with BMW may not be enough to overtake Hero, Bajaj & Honda

http://economictimes.indiatimes.com/...ors_picks=true

Unlike the popular sentiment on this thread I strongly believe that it's BMW who will benefit more from this deal instead of TVS. Reason being,all over the word it's the lower capacity motorcycles which have witnessed a boom. Sales are increasing in the below 250cc class and somewhat upto 500cc class, especially booming is the 125cc segment. Increasing fuel prices and rising insurance costs for bigger bikes are mainly to blame along with on going recession in most part of he world.
Also it gives a great way for BMW to cheaply enter this booming indian market.