BMW News

    BMW Motorrad has agreed to partner with India's TVS Motor Co. to develop a series of bikes with engine sizes below 500cc. In the deal with the BMW both companies will sell motorcycles through their own channels, TVS said in a statement to India’s National Stock Exchang.

    In view of changing motorcycle markets, demographic developments and increasing environmental demands we are expanding our product range so as to tap into fresh growth potential,” Stephan Schaller, head of BMW Motorrad, said in the statement. “This means that in future we will be able to offer vehicles in smaller capacity classes in addition to the BMW Motorrad core segments.”

    TVS, whose biggest motorcycle is the 180cc Apache, will gain access to bigger-engine technology to help stem market share losses to Honda’s local unit and Yamaha in India. The country’s fourth-largest bike maker lost the third rank to Honda Motorcycle and Scooter India Ltd. in the year ended March 31, 2012, according to data from the Society of Indian Automobile Manufacturers.

    TVS will invest $26,000,000 in the partnership, Chairman Venu Srinivasan said at a news conference in Chennai, India, and the first product will be ready in 2015, he said. The project will entail two TVS models, Srinivasan said.

    Shares of TVS Motor rose 10 percent to 39.75 rupees at the close in Mumbai, climbing for a fourth day. The shares have lost 5 percent this year, valuing the Chennai-based manufacturer at $346,000,000.––Paul Duchene