TVS, BMW tie-up to tap technology, market access
MUMBAI/CHENNAI | Mon Apr 8, 2013 5:09pm IST
[color=rgb(0,0,0);font-family:arial, helvetica, sans;](Reuters) - TVS Motor Co Ltd(TVSM.NS[/color]) and BMW AG's(BMWG.DE) motorcycle division announced a deal on Monday to jointly develop bikes that will give the Indian automaker access to BMW technology as it looks to stem its falling market share.
The long-awaited deal should help TVS revamp a dated product pipeline at the company, which has struggled to compete with a recent ramp-up in activity from Honda Motor Co (7267.T) and Yamaha Motor Co (7272.T) and could also help BMW gain a foothold in the world's second-largest bike market.
"We intend to leverage each other's strengths to deliver a new series of products offering cutting-edge technology for our customers," TVS Chairman Venu Srinivasan said, adding that the products would be released in 2015.
The tie-up will allow Ola cab operators to avail cheaper credit to buy BMW cars, receive after-sales support and guaranteed buyback, Ola said in a statement.
BMW-certified instructors will also train drivers about auto safety systems and technology, the statement said.