TVS-BMW TO LAUNCH 500CC BIKE BY 2015

TVS Motors, Chennai based Indian two-wheeler manufacturer, officially announced the long-awaited deal between TVS and BMW Motorrad. It is known to everyone that the TVS bikes are not performing well in the recent times. TVS Motors, which is losing numbers in the Indian market from past few months, is trying to reach a good place in the Indian market with this deal. BMW Motorrad, the motorcycle division of German auto mogul BMW, is known for their cult tourers and high performance bikes. While TVS Motors will get BMW Motorrad's technology, the Motorrad will get a developed infrastructure in world's largest two-wheeler market. Before this, TVS was in alliance with Suzuki which ended up in 2001. Now, this alliance will help them get the latest technology and direct access to BMW Motorrad's R&D.

�TVS Motor Company and BMW Motorrad have signed a long-term cooperation agreement. The aim of the cooperation is to join forces to develop and produce a new series of motorcycles that will cater to the segment below 500 cubic centimeters,� TVS Motor said in an official statement. "With BMW Motorrad, we see an ideal long-term strategic partner who shares our core values: focus on quality, engineering prowess, innovation and customer satisfaction. We intend to leverage each other�s strengths to deliver a new series of products offering cutting edge technology for our customers,"said Venu Srinivasan, Chairman TVS Motor Company, adding that the products would be released in 2015.

"TVS will invest 20 million Euro in the tie-up," Srinivasan told reporters while replying a question, while BMW declined to provide details of its investment in the collaboration. TVS and BMW Motorrad will develop and produce a series of in the sub-500cc segment motorcycles under this alliance. However, both TVS and BMW Motorrad will sell individual versions of the bikes through their own distribution channels. BMW Motorrad sold 117,000 motorcycles in 2012, where a major chunk came from Western markets such as the United States, Germany and France, while South Eastern countries including India had a negligible sale. "BMW Motorrad will use the partnership with TVS to develop small, less powerful motorcycles," BMW Motorrad President Stephan Schaller said.

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