NEW DELHI, India – TVS Motor Co. is in talks with BMW AG’s motorcycle division for a possible technological alliance, according to published reports.
“We will share more details on the nature of the talks in due course,” Venu Srinivasan, chairman of Chennai, south India-based TVS, told the Wall Street Journal.
The move is seen as benefiting TVS as it tries to compete with Indian brands Hero Motorcorp and Bajaj Auto, as well as the numerous brands from other countries that have set up manufacturing in India.
TVS lost its position as the third-biggest scooter and motorcycle maker by sales in the last fiscal year ended March to Honda’s two-wheeler unit in India. A collaboration would help BMW expand its dealer network while helping TVS develop bigger motorcycles and be better equipped for the fast-changing Indian bike market.
“A pact with BMW will change the fortunes of TVS,” said Deepak Jain, an auto analyst at Sharekhan Ltd. “TVS has been stuck with its products, and technology from BMW will help it become a major player in the bigger-motorcycle segment.”
Posted by Holly Wagner