Mumbai: TVS Motor Co. Ltd, India’s fourth-biggest motorcycle maker, rose to a two-month high in Mumbai trading after saying it’s in talks with a Bayerische Motoren Werke AG (BMW) unit for a technology tie-up.
The shares rose 7.92% to Rs 39.50, the highest since 2 May, at the 3.30pm close in Mumbai. The stock has lost 24% this year.
“We are in discussions with BMW,” TVS Motor chairman Venu Srinivasan said in a telephone interview on Monday, confirming the Mint report. He declined to elaborate.
BMW Motorcycles is looking into local sourcing of individual parts and components in India, and is in talks with TVS with regard to its sourcing activities, Rudolf-Andreas Probst, spokesman for BMW Motorcycles in Munich said in a telephone interview. BMW sold 55 motorcycles in India last year, Probst said.
TVS Motor was overtaken by Honda Motor Co.’s local unit as India’s third biggest two-wheeler maker in the year ended 31 March. Hero MotoCorp Ltd, India’s biggest motorcycle maker, has struck tie-ups with US-based Erik Buell Racing and Austria- based AVL for motorcycle design and engine knowhow, while Bajaj Auto Ltd owns 45.7% of Austrian motorcycle maker KTM AG, which makes models such as the Duke and Enduro.
Dorothee Tschampa in Frankfurt contributed to the story.