TVS-BMW to announce final deal on April 8

The much awaited alliance between TVS Motor and BMW is likely to be announced soon. This deal will principally have two components. First, there is going to be a technology alliance between the two partners.

Second, there is possibility of joint manufacturing of select high-end motorcycles of TVS, reports CNBC-TV18’s Ronojoy Banerjee quoting sources. This may be announced in about a week from now, however, the chairman of the company did not want to comment on this.

Also read: European Commission gives nod to KTM-Husqvarna deal

This alliance comes at a very interesting time because TVS has not had a major alliance with a foreign two-wheeler maker for a long time. Around 10 years back, its alliance with Suzuki had broken up and more recently, in 2009, it had tied up with an Austrian firm.

The company came out with a patented twin-spark technology and came up a bike called Flame. However, later the court had ruled that TVS could not use that technology because it was already patented by Bajaj Auto.

There seemed to be a lot of back and forth on this deal and many felt that the deal was possibly over because KTM, which is a Bajaj Auto partner had gone ahead and acquired Husqvarna, which was the offload motorcycle division of BMW. So, many felt at that possibly this deal between TVS-BMW would be over.

However, Venu Srinivasan of TVS Motor had categorically said that the TVS-BMW deal was still very much on. One has to wait and watch on the other final contours of this deal, but certainly it is good news for TVS. On April 8, there is likely to be an official announcement by the two companies.