TVS Motor’s share price has stacked on a huge gain of almost 20 per cent in trading on the Bombay Stock Exchange over the past seven days.
India’s former Suzuki JV partner, TVS has struggled since splitting acrimoniously with Suzuki more than a decade ago and subsequently slipped from third to fourth place in the ranking of biggest Indian bike manufacturers behind Hero, Honda and Bajaj. Nevertheless, the company has increased in value by nearly 60 per cent on an annualised basis, despite declining domestic sales and market share.
Pinpointing the reason for recent investor optimism is easy. TVS has been chosen by BMW Motorrad as its development and production partner for a new range of small-capacity BMW motorcycles targeting the Indian and other emerging markets. That minted brand association is a tremendously powerful investment confidence booster.                                Â
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