TVS Engine Co. is in stocks with BMW AG's motorbike department for a possible technical partnership, a move that may help the Native indian organization in creating higher operated two-wheelers to contest with regional competitors Idol MotoCorp Ltd. and Bajaj Vehicle Ltd. as well as Japan's Yamaha Engine Co. and Ford Engine Co."We will discuss more details on the characteristics of the stocks in due course," Venu Srinivasan, chair of Chennai, southern region India-based TVS, said by phone on Thursday.
A technical partnership is key for TVS to be expanded its product collection and charge diminishing business. TVS lost its position as the third-biggest motorcycle and motorbike manufacturer by revenue in the last economical season finished April to Honda's two-wheeler unit in Native indian.
Local revenue of motorbikes with applications above 125cc increased 17% in the past economical season to 2.99 thousand systems. The growth outpaced a 12% development of total regional revenue to 10.1 thousand motorbikes.
"A pact with BMW will change the prospects of TVS," said Deepak Jain, an automatic specialist at Sharekhan Ltd. "TVS has been trapped with its items, and technical innovation from BMW will help it become a major player in the bigger-motorcycle section."
Mr. Jain said a possible pact will also help BMW as the In german automatic manufacturer can utilize TVS's revenue network to sell its items in Native indian.
A BMW Native indian spokesperson didn't react to calls.
Shares of TVS increased on the news and at 0647 GMT they were up 6.4% at 38.95 rupees on the Bombay Stock Exchange, where the standard catalog was down 0.8%.
Earlier Thursday, the Great paper, stating Mr. Srinivasan, said TVS isn't considering selling any discuss to BMW.
If stocks with BMW determine positively, TVS will be a part of Idol MotoCorp and Bajaj Vehicle in attaching up with international two-wheeler creators to source technical innovation for making larger motorbikes.
Hero MotoCorp had lately finalized an contract with U.S.-based Erik Buell Rushing LLC for looking for applications, while Bajaj Vehicle uses the technical innovation and provides some items of Austrian bike manufacturer KTM Power Sports AG, in which the Native indian organization has a 47% discuss.
BMW's motorbike department, BMW Motorrad, provides designs under its R and K sequence and the S 1000 RR superbike in Native indian.
BMW Motorrad's primary, Hendrik von Kuenheim, said in Feb the organization was looking for relationships with two-wheeler producers in growing marketplaces, such as in Native indian, to in the area build its motorbikes or some parts.
