The big news out of India today is that the country’s fourth-largest motorcycle manufacturer, TVS, is in talks with Germany’s leading two-wheeled maker, BMW Motorrad. While there are few details on what is occurring between the two companies, it is being reported by the Wall Street Journal that TVS is hoping to get some technical know-how from BMW in making larger-displacement motorcycles.
Likely to end in some sort of strategic partnership, BMW is surely eyeing TVS’s distribution network in exchange for its 500cc+ help, as all the major OEMs are currently jockeying for position in the growing Indian market. Other rumors around the deal suggest that TVS could help BMW create smaller-displacement machines, specifically designed for India, which would presumably also be available in other emerging markets like South America and Southeast Asia.
With TVS’s competitors, Bajaj and Hero MotoCorp, already seeking alliances with established western brands, the Indian company is looking not only to find a foothold with the budding premium Indian motorcycle market, but also create a defensive position in the increasingly competitive Indian motorcycle industry.
With Bajaj now taking a serious minority stake in KTM, and rumors about Hero MotoCorp investing in (if not purchasing) Erik Buell Racing still fresh, the news of TVS and BMW talking about international collaboration creates a stir about the future of the motorcycling landscape.
With emerging markets like India looking increasingly each day as the future of the motorcycle industry, one has to wonder what sort of consolidation, partnerships, acquisitions, and mergers could occur in this space in the coming decade. Something to chew on this Monday afternoon.
Source: WSJ (pay-wallified)
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