TVS enters into long term co-operation with BMW Motorrad to develop new ... - Economic Times

Prices | Financials | Company Info | Reports CHENNAI: Chennai based two wheeler major TVS Motor Company has entered into a long term co-operation with BMW Motorrad to develop and produce new series of sub 500cc motorcycles. The motorcycles are currently under development and they will hit the market in 2015. The duo will come out with distinct looking motorcycles for both TVS and BMW and they will be sold through their independent network The tie-up will help TVS Motor Company to expand into premium motorcycle space, where Bajaj-KTM- Kawasaki are expanding aggressively. And for BMW, this will expand their portfolio into smaller motorcycles, a space, where it has no presence TVS Motor Company will be investing 20 million Euros in its facilities, whereas BMW Motorrad will be investing in development and testing at Berlin. More details on the tie-up is yet to be available These motorcycles will be manufactured at TVS Motor Company's plant in either Mysore or Hosur Venu Srinivasan, Chairman, TVS Motor Company said, "We have been working together on this and both the partners had mutual discussion and agreement. We are very impressed with their focus on quality, reliability, technology. From our side, they saw our ability to develop smaller products (from global standpoint), good production engineering and robust supply chain. It is win-win for both partners." 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 strengths of both companies. Stephan Schaller, President, BMW Motorrad said, "We are in the process of re-alignment of our motorcycle business and make it profitable. Our focus is on urban mobility and electric mobility. I regard this tie-up in our endeavour to deliver sustainable and profitable growth." The co-operation agreement involves the two companies each offering their own vehicle derivatives, which will be sold through their own distribution channels in India and across the globe. Schaller added, through this tie-up we would be able to tap into emerging markets of Latin America and Asia. As an international company, the BMW Group operates 28 production and assembly plants in 13 countries as well as global sales network with branches in over 140 countries. The main production facility is in Europe. BMW Motorrad models comprises of 19 premium motorcyle and scooter models ranging from 650 cc to 1600 cc and it is market leader in 13 countries. The company's core markets are in Germany, USA, France, Italy and Brazil. Copyright © 2013 Times Internet Limited. All rights reserved. via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFcK3jNn4mSKvEACqCyXNwRDCMX_g&url=http://economictimes.indiatimes.com/news/news-by-industry/auto/two-wheelers/tvs-enters-into-long-term-co-operation-with-bmw-motorrad-to-develop-new-series-of-motorcycles-sub-500cc/articleshow/19443518.cms

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