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Old 27th October 2019, 03:53   #1
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Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Although this may be a little late in the day, sharing my thoughts on the BMW G 310 siblings in the Indian market and some of their issues and a potential way forward for BMW (and TVS). I am putting this post as I have always loved BMW bikes, small or big for a lot of things they do for me as a biker, and having been riding BMW bikes for close to 2 decades now, I am pained to see a kind of less than desirable approach from BMW Motorrad India and its dealers when it comes to after sales service of not only the small bikes but also their bigger siblings (we already have a post running on the accident K1600GTL). Indeed, when it comes to Service I also concede that most times – The good is forgotten and the bad never forgiven! Therefore, for every negative story that is highlighted, it is possible there are 10 or 100 positive stories that go unreported. Furthermore, the higher you pay for a product, higher are the expectations and louder are the grumblings if things were to go south! Nevertheless, my post here is specific to the G310.

From the time we have been discussing on this forum the introduction of the 310 bikes under the BMW brand name in India, I was always pondering about the all important question of how will BMW handle the AFTER SALES SERVICE. Primarily, because it is no secret that BMW charges some of the highest rates on the planet for spares, labor, accessories & apparel, therefore, the relative parts/labor costs for a 25 Lakh 1200GS and a 4.5 Lakh 310GS cannot be equal or even if BMW reduces, there is a limit to what they will come down as BMW has a somewhat standardized ASS price approach worldwide. Besides, we in India have been used to smaller displacement bikes from 250-400cc being serviced at a certain price range and suddenly are we ready for a big bump in our routine service/repair bills only for the blue & white roundel?? Some may argue, if you want to go for a premium brand, you have to be ready to shell out more for everything else as well OR even the longer service interval for the G310 justifies it. OK Accepted. But then, one naked reality is this is a made in India bike (while India is undoubtably among the world’s largest markets in this segment) and there is a 310 from TVS which by all means is neither as expensive to buy nor service, so knowing the Indian mindset there is always going to be a head Vs heart argument if the extra-large gandhis being demanded for this German-Indian is worth the value it offers. From many of the ownership accounts thus far, I don’t see such a vast difference in value that you get for the extra you are paying, but the baby BMW is certainly a well engineered bike like all its bigger siblings and purely from a usage point I see most owners are happy with what they get out of the bike.

BMW in its infinite wisdom, global experience & long term planning knows better than what an ordinary Jack like me must be thinking. However, I feel for these made in India bikes, for the Indian market specifically, BMW & TVS was better off selling them with a joint BMW-TVS badging, thru select regular TVS dealers in every city/town and charging a premium of 20-30k (if required!) above other similar 300-400cc bikes just to differentiate it as a BMW since it will happily carry that logo together with the TVS logo. In such a case these BMW bikes would have most consumables like tires, battery, chain, brakes etc and other stuff from TVS/local manufacturers which would be charged on par with other TVS products’ parts/labor or even a tiny premium just for exclusivity may perhaps also be acceptable I would assume. That way most of these owners could also be treated as premium customers by the TVS dealer (I have heard some G310 customers complain about a lil step motherly treatment at certain BMW showrooms), while the owner is also aware & content that he/she is still riding a fine piece of German engineering. With the level of already existing TVS dealership coverage across India and its reputation, the BMW-TVS bikes reaches a much wider geographical area and with only a relatively smaller bump in price than what is being charged now, these will definitely appeal to a lot more customers bringing in multi fold increase in sales as compared to the present numbers and more significantly my guess is that for many of these customers, walking into a TVS service outlet is certainly going to be less stressful thinking about service/repair/parts bills than walking into a BMW Service shop. This way BMW-TVS will not need separate strategies for the Indian market and most significantly I believe BMW will see a much larger & sustained sales turnover AND many more happy Indian customers. Going further, these happy customers could also consider upgrading to the bigger bikes thus bringing in additional potential sales for BMW while there is also a possibility, esp with the 310GS, that many big bike customers(BMW & others) could keep the baby GS as an additional bike to really flog it on the trails etc as it will be lighter to handle, much cheaper to fix and also timely replacement parts availability will be a major plus point.

If BMW has decided from the outset that for its Motorrad dealers the larger sales turnover of these smaller 310 bikes will ‘supplement’ for the relatively lower numbers of big bike sales income, then I am not sure if they have moved in the right direction so far with the preset strategy and operating style. After all, for a company that has been in this business for close to a century and has embarked on a strategy of constantly bumping its cc, hp and technology on its bike bikes, the very idea of their foray into smaller bikes was not to prove a point or show their prowess, but solely to sell more and keep their cash registers ringing. I think the Indian market has enough opportunity for that if approached properly, which can also in future be adapted for certain other high volume markets across the globe where TVS is also already present.

Would like to hear others thoughts on this.

Last edited by Haroon : 27th October 2019 at 04:14.
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Old 28th October 2019, 00:28   #2
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re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

For a motorcycle that is Made in India in collaboration with one of the best Indian motorcycle makers - i never expected any of the below right from Day 1.

Why was the G310R priced almost double of the TVS Apache RR310? Most of the components between both the bikes are same - then why is the BMW so expensive? Is it just the branding / badge or anything more to it that justifies the price?
Take the case of A Toyota Vs Lexus or a Honda Vs Acura - underneath both their models are same - but there is a lot of difference between them where the price increase is justified.

Service / Maintenance : Understood that this is a BMW (which in its entirety, it is not) - why should a servicing a "mainstream" (relative term) BMW be so expensive compared to a TVS. Both would probably use the same components - then why charge a premium for the service when you are already charging a premium for the brand?

Spares / Parts - the key factor for BMW to collaborate with TVS (or any other manufacturer) was to bring the prices down or localise content on the TVS. If so why spare price differences for the same part.

All in all I can connect BMW to a multiplex theatre who sells local made samosas and pop corn (that you get for 20 bucks each) for 300 each.
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Old 28th October 2019, 08:29   #3
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Well, all I can say is that BMW sold the bike cheap so they can make pot-loads of money on service/spares aspects. It's a BMW guys, be in Made in Germany, or Timbuktu - the emblem is recognized as super-premium. Regarding TVS and BMW co-branded service, it would be perilous to have such an arrangement - since it leads to brand dilution. They would rather not sell these bikes than risk that. Your best bet is to zero in on an expert mechanic and stick to him.
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Old 28th October 2019, 09:49   #4
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

The problem with BMW is that they don't want to dilute the BMW Motorrad brand with the other common brands. That is one of the primary reason why the pricing is atrocious. But the quality check should have been done properly on the motorcycles and that is unacceptable for a brand like BMW. Even though it is built in TVS factory, it is being sold through BMW Motorrad so the quality should be top notch and there should not be any repetitive issues.

In my rider group here in US, plenty of guys owns GS1200 with lot of miles on it with regular scheduled maintenance alone. The bike is bulletproof and runs like charm even after 80k miles in certain cases.

- My friends in India are saying that cost of servicing TVS bikes are higher than that of Yamaha and even KTM in some cases. Not sure how true it is.
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Old 28th October 2019, 14:17   #5
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

I feel people often make the mistake of drawing comparisons from the car world to the bike world. A BMW car might be laden with more tech and gizmos than a Maruti but a G310R is not more complex than any other bike in its segment so how does the brand expect to get away with its pricing? Especially in India where it is manufactured. Obviously the vast majority of bikers who know about the bike also know about the fact that it is made here itself so it would be hard to expect them to pay so much for it. An absolute joke IMO it is so bad that I honestly judge the heck out of the kind of person who shells out the money they are asking, to buy a G310R because I know that it is literally double the price just for the badge

Quote:
Originally Posted by hema4saran View Post
- My friends in India are saying that cost of servicing TVS bikes are higher than that of Yamaha and even KTM in some cases. Not sure how true it is.
No chance. IMO in terms of parts cost Yamaha is most expensive but it is also far more reliable so it wins in terms of maintenance costs over a period of 3 years of ownership. TVS makes many parts cheaper than KTM but KTM has the edge when it comes to cost of consumables. However, I can guarantee you that you will find atleast one bare 390 with its engine sitting opened on a steel desk at every single KTM service center and it is this tendency of their 390s to chew through their own guts that makes them quite expensive to maintain (I own an RC390 myself). So among the 3 I'd rank Yamaha to be the easiest and cheapest to maintain, then TVS and finally if you're ready to actually find out what it means to maintain a bike, KTM. The 390 series is atrociously needy in terms of maintenance and thus expenditure as well. However it more than makes up for it when its running well
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Old 29th October 2019, 01:45   #6
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

As pointed above, unlike a car comparison like say a BMW 320 and Toyota Corolla, where there is lots more by way of technology, handling, body structure etc, the G310s dont offer any exceptional hardware compared to similar other bikes. (Of course talking of those 2 cars, seeing the number of BMW & other used exotics abandoned, 15 years from now, its quite possible both cars will still be on the roads, but its likely the cheaper Corolla may only make it back home also )


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Originally Posted by hema4saran View Post
The problem with BMW is that they don't want to dilute the BMW Motorrad brand with the other common brands. That is one of the primary reason why the pricing is atrocious. But the quality check should have been done properly on the motorcycles and that is unacceptable for a brand like BMW. Even though it is built in TVS factory, it is being sold through BMW Motorrad so the quality should be top notch and there should not be any repetitive issues......
I do appreciate that its BMW's choice not wanting to dilute the brand name and I am presuming they decided to offer a 'cheaper' BMW for those that cant afford the bigger 'real deal' or whatever they have in mind.

In the above scenario, I am wondering they could have made the G310s in their Berlin plant itself. What was the necessity to tie up with another company located in a third world country (as Europeans & Americans perceive us- although we can teach the first world a thing or two about the making & designing of such bikes) and they source parts from as far as China to South America, send it to Hosur, assemble it and then ship the bike back to Europe and other global markets including India with a hefty mark up on the price...And then wait with a razor when you go back to service the bike!
So as a consolation prize was TVS given the rights to price it & sell the RR310 under their name?

In fact, KTM may not have a 95 year old heritage or diverse range of bikes like the Bavarians, but they are also a reputed & sought-after European brand. Although, they did not co-brand with Bajaj, but they have successfully managed to sell their hugely popular Indian assembled 125, 200, 250 & 390 bikes by hitting the right note with its buyers in that segment and pricing the bike competitively. Sure, they also have some technical issues, but when the bike runs, its a hoot to ride and thus KTM have managed to keep the sales graphs going up constantly. I gather in India for FY 2018-19 they sold more than 50,000 bikes.

Last edited by Haroon : 29th October 2019 at 02:12.
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Old 29th October 2019, 13:36   #7
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Rather than the partnership, the problem was there in the product itself.
- Conservative state of tune for the motor
- Un-damped vibrations from the motor at various rpms
- Lack luster Pricing, Half-hearted advertising, Expensive spares
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Old 29th October 2019, 14:51   #8
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

My two cents: I dont think BMW was really serious about the Indian market. They just wanted to use the Indian production base (for low cost manufacturing) in order to export to the world. I think they have crossed 75000 units manufactured at the TVS facility (so the product is no flop by any means).
They may have also had an "understanding" with TVS to leave the Indian turf to TVS in exchange for the manufacturing capability. BMW is a giant multinational, they are not Stupid.

Last edited by car love : 29th October 2019 at 14:52.
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Old 29th October 2019, 14:57   #9
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Personally, I feel BMW should have focused on a 600cc adventure or naked bike in this partnership rather than the 300cc G310 which has tons of competition. That would have at least been a segment where the customers prefer premium branding and can afford the service costs.
You can't target mass market customers and expect them to pay premium pricing for an underpowered bike.
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Old 29th October 2019, 17:48   #10
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Among the three i.e., BMW, Bikers and TVS the biggest winner is TVS and the consolatory price goes to the bikers, BMW has definitely lost it in Indian market (although it might have turned out to be beneficial for BMW global)

On an unrelated note, the undervalued TVS shares got a good boost when the MOU announcement was made and the shareholders did massively benifit after that.

I would like to forward my 5 paise here:

Design:
1. Engine engineering was appropriate for GS310R and RR310 whereas the rough and undertuned nature doesn't augur well for a lightweight streetfighter (either the naked GS should have been a high revving hooligan (like a KTM) or super smooth epitome of elegence). Thus the choice of engine for naked bmw310 seems totally out of tune with expectations.
2. There is a lot of learning for TVS from this venture like engine centric assembly line, high performance chassis production process (see TVS 310 production line video, the process of bike assembly is unlike their traditional process)
3. TVS successfully designed their version of 310 inline with their Apache brand values and ended up with a rather near perfect sport tourer, whereas naked GS doesn't stand out among the sea of naked quarters globally, off-road GS however it seems very much in aligned with its roots.
4. If you put aside the electrical niggles in the 310s the bikes seems to be solidly designed, if only BMW had tested their machines much better in indian conditions things would have been better sorted out.

Product positioning:
1. On paper BMW strategy was sound, they should have achieved better dealer profitability, better road presence in terms of numbers, an entry level motorcycle that can be sold worldwide.
2. Unfortunately, it seems BMW is managing the spare parts logistics separately instead of taking advantage of widespread TVS network. They should have maintained the inventory of their spared better in india for the sake of faster turnaround in services.
3. TVS just hit a home run with their positioning, premium among the peers (rightfully) yet not exorbitantly premium. They were able to benchmark the best (CBR250) and better it in each and every department be it looks, performance or ergonomics. I personally feel that they could not have created a better product with underlying chassis and engine combination.
4. Finally, the pricing of BMW 310 twins are unnecessarily exorbitant, what they might have lost with sticker price, they could have easily recouped with service and spare sales in India. They could have added dealerships if the crowd becomes too much due to high sales. (BMW service network is rather small for the country anyway)
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Old 29th October 2019, 18:33   #11
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

The partnership was not established for increasing BMW's footprint in India, obviously. Global sales of lower displacement bikes [read sub 600cc] are on a continuous rise for the last 10 years AFAIK.And KTM has been the flag-bearer at least in Europe and they made tons of money in a short span.BMW did not have any bike in this space. But KTM had already shown how it could be done.
BMW took a page out of KTM's book and did the same with G310.
Since its already made here in India and there is a growing market for these segment bikes, they just launched it here too, at a premium price which they thought would be justifiable for a BMW Motorrad bike as is the case with their every other bike on sale here.
But I have noticed the perceivable quality of G310 to be very good in touch,feel and looks. The running cost will be almost similar to rest of their range ,I presume, on the higher end.
The only grouse I find is their price. Far too high.
In every other global market G310 is cheaper than a 390 bike by some margin.But not here in India.
As far as BMW is concerned,310 sales are good globally and their cash registers are ringing constantly.Their partnership with TVS and creating a production base in India could be one of the best move they made in a long time.
And it seems for BMW Motorrad,India is not yet ripe enough a market for them to be bothered by low G310 sales numbers.
From our perspective the pricing should have been better. It might have given them loyal customers and in the long run mighty sales numbers.

Just think of KTM now, any competent bike of their's will have sales and fan following in India.
So could have been BMW if they had played their cards right. And that is what they ruined,at least for the time being.
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Old 29th October 2019, 19:39   #12
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Could BMW-TVS have done things differently with the G310R & 310 GS for India - To answer this in a simple sentence - BMW have to cater to the needs of Indians.

A BMW product, made in India, certainly has to come with an acceptable & affordable price to the segment they target. If GS is for hardcore enthusiasts who are in the elite class, then the baby GS has to be positioned for hardcore enthusiasts in the non elite class.

Now the problem is that, the hardcore enthusiasts in non elite class think in 2 different ways...
1. When Apache can do 95% of what BMW 310 could do, why not TVS?
2. When I can spend 4L on 310, why not spend a little more & settle for any of the next affordable Ninjas? (esp Ninja 400 twin)

So BMW targets only a hardcore enthusiast who really really want a lowest priced adventure touring (again Impulse 200 should be able to do atleast 70% of what GS 310 could do here for a ridiculously lesser cost). So BMW for 310 is left with a very very niche segment of enthusiast & they cannot expect a great sale either. Not to mention the exorbitant servicing cost as good as a Jap middle weight class.

Personally speaking, I still laugh at the puny little single cylinder engine as BMW is not known for such things. 4L to me is justified, if they make a twin boxer 400 cc that resembles GS1200 & with basic accessories (to begin with). I would justify the servicing cost as well.

Last edited by aargee : 29th October 2019 at 19:44.
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Old 29th October 2019, 20:25   #13
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Quote:
Originally Posted by car love View Post
BMW is a giant multinational, they are not Stupid.
Ahem Ahem!! There have been plenty of failures by intelligent MNCs who tried to tap into the Indian market, infact too many to list here. However, yes, I agree, this was not a full hearted attempt by BMW for sure.
Quote:
Originally Posted by v12 View Post
All in all I can connect BMW to a multiplex theatre who sells local made samosas and pop corn (that you get for 20 bucks each) for 300 each.
Well said. However, in case of Samosas and Popcorn, there is an important aspect. We can choose to not buy them while in a Theatre.
Incase of BMW, not only are the customer not buying the Samosas and Popcorns, the ones who did are having a torrid time living with theirs. No offence to any owners, but the niggles cropping up on many 310s are simply not trust inspiring.

Had it been another brand like a Hero or a Bajaj, it was acceptable, infact expected due to the low cost parts and so on.
But BMW, No Way!!
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Old 29th October 2019, 20:35   #14
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

Quote:
Originally Posted by DevilzzzzOwn View Post
Had it been another brand like a Hero or a Bajaj, it was acceptable, infact expected due to the low cost parts and so on.
But BMW, No Way!!
I don't think it is is acceptable even in a Hero or Bajaj.
In fact I would say BMW is being treated with kiddie gloves here. Had it been any Indian brand like Bajaj or god forbid RE, there would have been a much bigger s**t storm
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Old 29th October 2019, 22:02   #15
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Re: Could BMW-TVS have done things differently with the G310R & 310 GS for India?

BMW launched the bike under their own brand so that they could convince people in Tier 2 cities to launch dealerships which no one otherwise would as sales of the big bikes in Tier 2 cities may be limited to 1 bike per month which is not sustainable, but from what I hear the 310 is not doing so well and is being pushed with high discounts so doesn't look like the bike is helping the sustainability of dealers anyhow.

One thing to realise is that the real customers for a Manufacturer is the Dealership itself. If they can open 100 new dealerships in smaller towns with rules that they have to purchase and display the complete range of big bikes then that means they are able to invoice 100 pieces of each big bike in their lineup, which they of course do at full price. Moving it off the showroom floor? Now that's on the dealer and whatever discount he may have to give to do so is out of his own pocket. For example, I did attend the launch party of new BMW Motorrad Dealer in a Tier 2 city and on opening day he had the complete line up of big bikes on display but only 3 GS310R planned for delivery and from what I could gather, even after a huge gathering for the launch party, the dealership didn't really receive any bookings on launch day.
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