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BMW Partners With TVS to Build New Motorcycle Series

BMW Creates New Bike Series

BMW Motorrad, the motorcycle arm of the world’s biggest luxury carmaker, agreed to partner with India’s TVS Motor Co. (TVSL) to develop a series of bikes with engine sizes below 500 cubic centimeters. This could only be the beginning, with this newly founder partnership it seems as if the sky is the limit.

In the deal with the Bayerische Motoren Werke AG (BMW) unit both companies will sell the motorcycles through their own channels, TVS said in a statement to India’s National Stock Exchange today. “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 Motor Co. (7267)’s local unit and Yamaha Motor Co. (7272) 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 20 million euros ($26 million) in the partnership, Chairman Venu Srinivasan said at a news conference in Chennai, India today, 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 18.9 billion rupees ($346 million). To contact the reporters on this story: Siddharth Philip in Mumbai at This email address is being protected from spambots. You need JavaScript enabled to view it.; Ganesh Nagarajan in Chennai at This email address is being protected from spambots. You need JavaScript enabled to view it.