Chennai, Apr 9 (PTI): Two and three-wheeler maker TVS Motor Company has signed a "cooperation agreement" with German auto-maker BMW Motorcycles' division BMW Motorrad to develop and produce a new series of motorcycles in the below 500 cc segment.

"TVS Motor Company and BMW Motorrad have signed a long term cooperation agreement. The aim of the cooperation is to join forces to develop and produce a new series of motorcycles that will cater to the segment below 500cc", TVS Motor Company said in a statement.

The agreement allows the companies offering their own vehicle derivatives, which will be sold through their own distribution channels in India and across the globe.

"We have a highly expert and experienced partner in the TVS Motor Company. This means that in future we will be able to offer vehicles in smaller capacity classes in addition to the BMW Motorrad core segments," BMW Motorrad President Stephan Schaller said.

The tie-up for TVS Motor comes after parting of ways with Japanese auto giant Suzuki Motor Corporation.

"With BMW Motorrad we see an ideal long term strategic partner who shares our core values:focus on quality, engineering prowess. We intend to leverage each other's

strengths to deliver a new series of products offering cutting edge technology for our customers," TVS Motor Company Chairman, Venu Srinivasan said.

The motorcycles would be manufactured by TVS Motor – one for the domestic market, other for overseas market.