After three big collaborative failures — Mahindra-Renault (2007-10), Volkswagen-Tata (2017) and Ford-Mahindra (2019) — the recent success of Toyota-Suzuki in cars and TVS-BMW Motorrad for motorcycles has shown that co-badging can be the way forward for forging alliances.
Analysts said the earlier tie-ups might not have worked as they aimed at creating a new, joint product, but the Toyota-Suzuki and TVS-BMW Motorrad strategy of co-badging of products offered customers models they were already familiar with.
The success of TVS-BMW Motorrad is noteworthy, as it has completed 10 years of collaboration, sold 140,000 motorcycles across the world, and, as per automotive analysts, the partnership looks good for many more years to come.
In April 2013, India’s TVS Motor Company and Germany’s BMW Motorrad signed a long-term deal to manufacture sub-500cc motorcycles for global markets. This collaboration has resulted in the development of four products on the 310cc engine platform – manufactured at the TVS plant in Hosur, Tamil Nadu. The first motorcycle was TVS Apache RR 310 (launched in December 2017), followed by BMW G 310 R and BMW G 310 GS (July 2018), and BMW G 310 RR (July 2022).
All four have collectively sold 140,000 units in markets, including India, the EU, the US, Latin America, Japan and China. Of these, BMW Motorrad has sold more than 21,000 motorcycles in India and exported over 50,000 motorcycles.
Both companies are now expanding the partnership and jointly developing new platforms and future technologies, including electric vehicles.
KN Radhakrishnan, director & CEO, TVS Motor Company, said the partnership is a testament to common values of BMW and TVS on innovation, quality, customer delight, engineering prowess and a focus on delivering globally-aspirational products.,“These four motorcycles are available in more than 100 countries, and with the expansion of this partnership towards future technologies and sustainable mobility solutions, we are in discussions to expand our manufacturing network beyond India to cater to our future growth, which includes the recently-unveiled BMW CE 02,” Radhakrishnan said.
The CE 02 is an electric two-wheeler powered by two split 2 kWh lithium-ion battery packs and has a claimed range of 90 km.
Som Kapoor, EY India Automotive, Future of Mobility leader (consulting), and partner, told FE that BMW and TVS have natural synergies. “TVS helped BMW with the 310cc platform which was not easily possible for BMW to build in Europe. Thanks to this tie-up, BMW was able to leverage Indian engineering prowess, to make a bike not just for India, but also for global markets where buyers are increasingly looking for midsize motorcycles,” he said. FE