TVS Motor rises 7% on tie-up buzz with BMW

NEW DELHI: TVS Motors Ltd rose over 7 per cent in the opening trade on Monday following reports that the company is in talks with German auto maker BMW AG’s motorcycle division, BMW Motorrad, to source technological know-how for developing high-end motorcycles.

“A possible pact with BMW will help TVS access technological know-how to develop more powerful motorcycles and be better equipped to compete with larger rivals such as Hero MotoCorp Ltd and Bajaj Auto Ltd,” media reports indicated.

Earlier in the month, the company posted a dismal set of numbers for June 2012, with total volumes declining by 8 percent YoY to 168,693 units, led by a weak performance across all product segments.

In a statement TVS Motor said it sold 168,693 units (two wheelers: 165,438, three wheelers: 3,255) last month, down from 182,456 units (two wheelers: 178,633, three wheelers: 3,823) in June 2011.

At 10:40 a.m., TVS Motors was trading 6.5 percent higher at Rs 39. It has hit a low of Rs 36.50 and a high of Rs 39.45 today.