TVS Motor-BMW Motorrad to launch first product in 2015-16
The two companies entered into an agreement last April to sell bikes below 500cc
Chennai: TVS Motor Co. Ltd on Monday said it will launch a high-powered bike from its partnership with German auto maker BMW Motorrad in the second half of 2015-16.
“The BMW partnership is work in progress as the bike is designed from scratch," Venu Srinivasan, chairman and managing director of TVS, said on the sidelines of the launch of TVS Star City Plus a new 110cc bike.
It is on schedule and will be launched in the second half of 2015-16, he added. He declined to give any more details.
The two companies entered into an agreement last April to sell bikes below 500cc, under the TVS and BMW brands. The Chennai-based company will invest €20 million in this initiative.
“We plan to improve our market share in the bike segment where we have largely been absent," Srinivasan said.
The motorcycle market is dominated to the tune of 65% by 100-110cc mass or entry segment bikes used mostly for city commuting. TVS has just 5.9% of this market, with the Victor and the Star City. In the executive segment comprising 125 cc bikes, TVS Motor has only Phoenix, launched end of 2012.
With the launch of TVS Star City Plus and re-launch of its new Victor in a few months it expects to double the sales of two-wheelers to 50,000 a month by January 2015. TVS Star City plus is priced at ₹ 44,000 (on road) in Delhi. Next month, it plans to launch TVS Scooty Zest in the fast-growing scooter segment.
“The new launch and subsequent launches will give us much larger share although I do not want to speculate on the increase in market share," said Srinivasan.
TVS Motor was India’s third largest two-wheeler maker with a market share of 18-20% for many years. However Honda Motorcycle and Scooter India Pvt. Ltd overtook TVS in October 2011. Without a significant presence in the bike segment, TVS Motor has lost its market share steadily since then, according to analysts tracking the company.
“With the new launches we are positive to improve our market share to 14.5 % from the current 12 % by next year," said K.N. Radhakrishan, president and CEO of TVS Motor.
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