BMW Motorrad Eyes Alliance with TVS Motors

BMW Motorrad is eyeing a hand in hand movement with TVS Motors. The German giant is already in talks with TVS Motors, which manufactures two wheelers as well as three wheelers in India, for production of components that BMW would need in its Indian line of bikes. BMW Motorrad spokesperson wrote that BMW Motorrad wants to dive into Indian as well as other Asian countries too, the main aim being to find partners who would supply or produce bike components locally. Mr. Hendrik von Kuenheim, the President of BMW Motorrad, paid a visit to the Chennai based two wheeler manufacturer, TVS Motors, which supports this news of an upcoming tie-up between the two. However, officials clarify that Husqvarna, a sister concern with BMW Motorrad, is nowhere soon coming to India. However, the insiders from the industry speculate that this love-make between the two, the German giant BMW Motorrad and TVS, the Indian two wheel manufacturer, could lead to something bigger, and that it could just not be something related to production and supply of components only.

Probably, it is a part of BMW’s plans to showcase lower displacement bikes in India, something close to 125 cc to 250 cc engined bikes. This is when BMW Motorrad sells bikes not below 800 cc in India, whereas the global range starts from 650 cc. What BMW Motorrad currently seems to be focusing at is cost reduction, to a level to stay in competition with Harley Davidson, Triumph and Ducati, which are selling pretty well in India, with their effective and competitive costing. Since Indian two-wheeler market has now become the second biggest in the world, this speculated tie up between some local experienced manufacturer would help BMW to understand the Indian market better and also reduce manufacturing rates. Dumping CBU and opting for CKD would reduce BMW’s costs quite effectively.

However, this tie up would not only benefit the German manufacturing giant, but also the TVS Motors. Both the names having an expertise in their fields, both would be teaching each other something or the other. TVS Motors can absorb in the technology BMW uses in its bikes. And also could build a 250 cc motorcycle that would smother the Indian roads.
Wonder what a TVS Apache 250 taking lessons from BMW, with V twin motor and around 30 BHP of maximum power could mean to Indian motorcycle market! If things turn right, TVS could soon gain back its lost position, its lost market share. And to show the heating up competition, it is not just BMW Motorrad, Triumph, based in UK, is also planning a plant in Karnataka; its third plant with the other two being in United Kingdom and Thailand. This plant is speculated to work on a 125 cc bike specially meant for India. Harley Davidson, a two wheeler manufacturer based in United States, is also sweating on another product soon to seduce Indian enthusiasts.