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BMW Motorcycles To Marry TVS?

9
July
2012
  Posted at 02:00:00 PM
  File under  BMW News
  Author: Mike Werner
  Location: Normandy, France
click to see where India is on the map

India is the place to be at this stage of life. More and more people there are becoming wealthier, big and better motorcycles are being sold, roads are becoming modern and safer, lots of jobs, and great curries.

We've seen that KTM and Bajaj got married, with Indian Bajaj bringing a considerable dowry to the Austrian motorcycle manufacturer (they bought many of KTM's equity). Things are starting to look pretty good in this arrangement. But now it looks like two other manufacturers are going to get engaged!

BMW Open link in a new window and the Indian manufacturer TVS Motors Open TVS in a new window are currently dating, and will probably announce their engagement one of these days. TVS, like Bajaj, make low powered, low displacement motorcycles, but they do it in great numbers. And they have a big distribution network in the sub-continent. And that is something that BMW is interested in.

BMW TVS Motor Tie Up

BMW is already expanding in India, but it takes a lot of time putting a dealer network in place. A tie-up with TVS would make that problem much easier to deal with.

In contrast with KTM, who needed a cash infusion, BMW doesn't. There shouldn't be any equity transfer, but more a general cooperation and distribution agreement. TVS on the other hand are underperforming in a fast growing market. They went for the 3rd player to the 4th, selling "only" 1.89 million motorcycles last year.

The "dating" stage got confirmed by the TVS Motors' chairman, Mr. Venu Srinivasan to Business Line "We are in discussions with BMW for a tie-up, but at this point I can’t reveal more details. However, equity sale is not being considered".

That would leave the other big manufacturer, Hero MotoCorp, without a dance partner. They recently divorced from Honda, so I'd say they are looking into the personal ads in all the newspapers, and maybe even the on-line dating sites.

Via: Bike Advice



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