BMW to build 250cc bikes with TVS

BMW Motorrad has announced a formal partnership to develop and build entry-level motorbikes below 500cc with Indian motorcycle manufacturer TVS Motor Company.

The deal was confirmed in Chennai overnight and is part of what BMW Motorrad calls a "strategic reorientation" designed to reduce the financial burden of developing new motorcycles (by teaming up with TVS Motor Company) while increasing its reach in developing markets.

The name or type of motorcycles that will be borne of the long-term cooperation agreement is not crystal clear, though BMW does state that TVS Motor Company will release its own unique models, suggesting it won't just be a rebadging of the same model.

"The cooperation agreement involves the two companies each offering their own vehicle derivatives, which will be sold through their own distribution channels in India and across the globe," reads BMW's official press statement.

Because of the Indian connection it's likely that the partnership will bear simple fruit, in the form of naked, entry-level motorcycles, and as an example could rival machines such as the Indian-built KTM Duke 200. However BMW would certainly have the scope to develop 'premium' versions of 125, 200, 250 and 300cc models, for instance.

It's yet another move by a mainstream European bike maker to join forces with an Indian partner to gain access to affordable manufacturing and lucrative developing two-wheeled markets, such as India.

The Apache RTR 160 RD (pictured) is a typical motorcycle built by TVS.

KTM previously did a deal with Bajaj and now the Austrian company sells more motorcycles than BMW thanks to models that resulted from that partnership.

The President of BMW Motorrad, Stephan Schaller, said the partnership with one of India's biggest motorcycle makers would allow his company to "tap into fresh growth potential" and would also fill the gap in his company's portfolio.

"We have a highly expert and experienced partner in the TVS Motor Company. This means that in future we will be able to offer vehicles in smaller capacity classes in addition to the BMW Motorrad core segments.

Schaller speculated that "Various types of motorcycle are conceivable" but hinted that they wouldn't be cheap and cheerful rust buckets.

"They will meet the expectations of a BMW motorcycle in terms of riding fun as well as setting a new benchmark when it comes to stability, agility and performance figures."

The TVS Motor Company built more than two million bikes in 2012 and generated billion dollar profits, and the company's chairman, Venu Srinivasan, expects BMW's engineering and quality focus to rub off on its new products,

"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."