Engines Engineering’s History, and How its Acquisition Will Impact TVS

Big breaking news came in late today when TVS Motor announced that it has taken ownership of Italian firm Engines Engineering. With this acquisition, the Indian two-wheeler giant has established a Global Centre of Excellence (CoE) for Design and Engineering in Bologna, Italy which will be a concept-to-product innovation centre and will help in the development of future TVS products as well as Norton Motorcycles, given the expertise of Engines Engineering. An interesting aspect is that this isn’t the first time the Italian firm has been acquired by an Indian automotive giant, as it was under Mahindra and Mahindra's ownership from 2008 to 2012. So let’s get some more details about Engine Engineering and what impact it will have on TVS.

The Backstory

Engines Engineering was established by Alberto Strazzari over four decades ago in 1979, in Bologna, Italy. Strazzari never wanted to be a bikemaker himself, but instead aspired to partner with established brands in the development of new products; a concept that was unheard of back then. Think of it as freelance work for big projects. Engines Engineering went on to do everything from designing new two-wheelers to engineering new products from concept to production. Along its journey, the company has partnered with established companies such as Honda, Benelli, Yamaha, and Malaguti. 

It has had a major impact in the world of motorsport, and has helped many teams in the development of their race motorcycles. When Mahindra Racing entered Moto3 in 2011, the Indian automotive giant had raced with bikes built by Engines Engineering. In fact, Mahindra had acquired a majority stake in the company in 2008 not only to help fuel its racing ambitions, but also for commercial operations, as it had entered the Indian two-wheeler space with scooters and later motorcycles such as the Mahindra Centuro and Mojo. 

Hero MotoCorp had also partnered with Engines Engineering in 2012 to help it with R&D for its upcoming scooters, and also powerplant development. So as you can see, the Italian company isn’t new to collaboration with Indian manufacturers.

What Does TVS Gain?

TVS gets access to Engines Engineering’s massive expertise, not only in engine development but also with respect to design and styling. It will help the Indian brand scale up its modern engineering capabilities in areas such as digital simulation, rapid prototyping, and modular platforms. AI design tools developed by the Italian company will also be very useful, as will its knowledge of advanced material applications given its motorsport pedigree. 

The new Global Centre of Excellence (CoE) will help TVS attract global talent, as Europe still remains a hotspot for technological advancements. We have seen Royal Enfield reap the benefits of setting up an R&D centre in the United Kingdom. The newly announced partnership will also have a significant impact on the development of high-performance Norton motorcycles, TVS's future EV portfolio, and not to forget its own performance motorcycle range which will soon expand with the launch of the TVS Apache RTX 300. 

Another key factor is racing. TVS Racing is the oldest team established by an Indian manufacturer, and TVS has a vast racing portfolio too. It already participates in the arduous Dakar Rally apart from the Asian Road Racing Championship (ARRC). Engines Engineering will play a significant role in fast-tracking TVS's race bike development too. 

What remains to be seen is whether or not the TVS acquisition will last, or whether it will be as short-lived as the Mahindra Group's control. Given TVS’s track record, and how well this new acquisition aligns with its future prospects, we believe this has the potential of becoming a very fruitful move for the Indian two-wheeler giant.