Potential Indo-German Partnership of BMW-TVS to Challenge Eicher Motors-Promoted Royal Enfield’s Reign

CalenderPublished at January 18, 2023 by BikeJunction
Potential Indo-German Partnership of BMW-TVS to Challenge Eicher Motors-Promoted Royal Enfield’s Reign

The Indo-German cooperation of BMW-TVS, which is researching the market to identify a viable bike brand, may soon pose a threat to Royal Enfield’s multi-year dominance in the middle-capacity motorbike category.

With annualised sales of 0.8 million units, the Royal Enfield, which is supported by Eicher Motors, asserts to be the market leader in the mid-size (engines of 250cc to 750cc) category. In the market, it had an almost monopoly with an 87% share as of the end of December.

The head of marketing and product management at BMW Motorrad, Ralf Rodepeter responded when asked about the lack of competition in the mid-size class, saying the business is examining the industry to see whether there is “something that is authentic.”

The Siddhartha Lal-led Royal Enfield has capitalised on the heritage worth of its venerable trademarks by creating contemporary items without sacrificing the products’ vintage design appeal. No company has found significant success in this market since its competitors either never possessed products with a heritage value or had a similar attraction.

Rodepeter said, “You need to have something that holds your heritage, which holds true for Royal Enfield because their products are coming out of that same category.”

A few years ago, Honda Motorcycle and Scooter India, the nation’s second-largest two-wheeler manufacturer, joined the market with a few 350cc-powered motorcycles. According to information published by the Society of Indian Automobile Manufacturers, Honda has a 4% market share in this category (SIAM).

The 350cc bike lineup from Classic Legends, a Mahindra & Mahindra-led company that sells bikes with the historic brands Jawa and Yezdi, is in direct competition with the Royal Enfield line. The combined market share of the 2 brands is about 6%, despite the fact that they do not share wholesale dispatch information with SIAM.

The TVS-BMW partnership will celebrate its tenth anniversary in April, making it a unique example of a prosperous joint venture in the modern era. The joint venture has so far released two motorbikes under the BMW brand and one under the TVS brand, all of which are offered in India as well as in industrialised nations, including the US, China, Europe, and Japan.

The next two-wheeler platform for BMW is being designed and developed by TVS with a focus on Indian and international markets. Along with developing the next generation of gasoline-powered products, the combination has decided to collaborate on developing totally electrical products that might be available in two years.

“The collaboration with TVS has developed very well with over 125,000 sales of BMW bikes worldwide. We will put our requirements in quality, branding, engineering and design into our future bikes. There is more to come, we can’t tell what it is going to be,” Rodepeter said.

The CE 04, an electric two-wheeler with an 8.9kWh battery and a 130km range, will be released by BMW Motorrad in India the following month, marking the company’s entry into the market. The Motorrad business relies on its internal knowledge to create electric motorcycles, with BMW claiming the top rank in the electric car market.



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