BMW has entered into a partnership with Indian motorcycle maker TVS Motor Company to produce small-displacement motorcycles for the world market.

In a press release yesterday, BMW and TVS announced they have signed a long-term cooperation agreement to manufacture sub-500 cc motorcycles to be distributed through each company’s distribution network, both in India and around the world.

“We will be able to offer vehicles in smaller capacity classes in addition to the BMW Motorrad core segments,” said BMW Motorrad president Stephan Schaller at a recent press conference.

TVS Motor Company chairman Venu Srinivasan added, “We intend to leverage each other’s strengths to deliver a new series of products offering cutting edge technology for our customers.”

TVS produces a number of two- and four-stroke street bikes and scooters in displacements from 70 to 180 cc and claims to be the third-largest manufacture of two-wheelers in the world. It has a production capacity of 2.5 million units a year.

Both companies will contribute to designing new models but each will offer its own specific designs. TVS was previously in a partnership with Suzuki that lasted almost 20 years and was dissolved in 2001.