You may know about some of the many partnerships in the motorcycle industry. The words Bajaj and Loncin almost immediately come to mind. But there is another, less well known partnership that results in the manufacture of 17% of BMW Motorrad’s (BMW) bikes. That company is TVS Motor (TVS).
TVS is the third-largest powered two-wheeler manufacturer in India. Only Hero and Baja produce more bikes there. Many may not know that TVS produces about 17% of BMW’s total production worldwide. The company builds BMW’s 310 series of motorcycles at its plant in Hosur.
German Counsel General Karin Stoll recently toured the factory and tweeted:
“Around 17% of BMW bikes worldwide are produced at the Hosur facility. Never seen so many two-wheelers in my life, the results of yet another amazing Indo-German technology manufacturing partnership.”
The agreement has been going on for quite some time. First inked in 2013, it calls for a strategic partnership with BMW to jointly design and develop “high-end” bikes under 500cc. The bikes were then to be sold through both parties’ respective distribution networks for the global market.
Although the BMW – TVS partnership seems to be flourishing, TVS’s production capability can easily handle the job. The company has annual sales of 3M units and the capacity to build 4M units a year. So while it is producing 17% of all of BMW’s motorcycles, that’s only a small part of its manufacturing capacity.
The world continues to get smaller with these types of partnerships. No doubt we’ll see more of these types of joint manufacturing and design agreements in the future.
All photo credit: BMW Motorrad