BERLIN -- German auto manufacturer BMW (IW 1000/36), which also makes high-powered motorbikes, announced an agreement with India's TVS Motor Co. on Monday to produce small-engine motorcycles.
"The aim of the cooperation is to join forces to develop and produce motorcycles in the segment below 500 cubic centimeters," the German group said in a written statement.
Small motorbikes are highly popular in emerging markets such as India.
Stephan Schaller, who heads BMW's motorcycle unit, said the group was expanding its product range "to tap into fresh growth potential" amid changing motorcycle markets, demographic developments and environmental demands.
TVS Motor Co. is one of India's largest motorcycle manufacturers, producing annually 2 million vehicles and with a turnover of more than $1 billion.
Copyright Agence France-Presse, 2013
