TVS Motor Co. and BMW AG’s motorcycle division Motorrad have signed a long-term cooperation that will help the former in developing higher powered two-wheelers (below 500cc) to compete with local rivals like Hero MotoCorp Ltd. and Bajaj Auto Ltd. as well as Japan’s Yamaha Motor Co. and Honda Motor Co. The JV will start rolling out two models in 2015 each for TVS and BMW.
A technological alliance is key for TVS to expand its product portfolio and arrest dwindling market share. TVS lost its position as the third-biggest scooter and motorcycle maker by sales in the last financial year ended March to Honda’s two-wheeler unit in India. A collaboration will help TVS develop bigger motorcycles and be better equipped for the fast-changing Indian two-wheeler market. Even though two-thirds of motorcycle sales in India are in the entry-level segment — with engines in the 100-125 cubic centimeter range –the market for bigger motorcycles is expanding rapidly.
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