In 1937, the BMW R 20 replaced the BMW R 2 pressed steel model and was the first BMW motorcycle to have a bolted tubular frame. Like the BMW R 2, the BMW R 20 was designed for the segment up to 200 cc, which was exempt from the requirement for a motorcycle licence and vehicle tax in Germany. However, the BMW R 20 did not remain in the range for long because new licencing regulations came into force in 1938 and riders of motorcycles with a displacement of 200 cc now had to hold a motorcycle licence. A new class of motorcycle licence was created for two-wheelers up to 250 cc and BMW therefore launched a new model on the market with the BMW R 23.