TVS Motor shares slumped on Tuesday as the euphoria generated by the BMW dea l cooled amid concerns over the competition in the two-wheeler segment and health of the economy.
TVS Motor fell 12 per cent on the BSE to close at 35 on Tuesday. The broader markets also fell on Tuesday with Sensex closing 211 points lower.
BMW and TVS Motor Company have entered into a joint technical co-operation and manufacturing agreement to build and sell bikes below 500cc. According to the deal signed on Monday, which envisages no equity participation, TVS Motor will make the bikes under both TVS and BMW brands at its existing manufacturing facilities in Hosur or Mysore.
According to the agreement, the bikes will be manufactured by TVS Motors under TVS and BMW badges and both the partners will sell the bikes in India and overseas through their respective distribution networks.
The stock on Monday gained nearly 10 per cent on the BSE over the BMW deal.