Mahindra Eyeing Old British Bike Brands, Norton and BSA

[Update: TVS Motor Company Acquires Norton Motorcycles]

After acquiring the French two-wheeler manufacturer, Peugeot Motorcycles, the Indian auto major is now reportedly eyeing Norton and BSA.

Mahindra and Mahindra is one of the biggest automotive firms in the world with presence in almost every segment of the market including four wheelers, two wheelers, and commercial vehicles. It already owns the renowned South Korea-based automobile brand, Ssangyong Motor and the French scooter manufacturer, Peugeot Motorcycles, along with other firms involved in automotive designing, electric vehicles, and farm equipment, among others. Now, Mahindra is eyeing the historic British motorcycle brands, Norton and BSA.

Some reports claim that representatives of both BSA and Norton have already had meetings with Mahindra and the deal could be announced within the next six months. Among these two brands, Norton could be a better purchase for the company compared to BSA. After its revival by Stuart Garner the brand hasn't performed that well over the last few years in the terms of sales. However, the man did succeed in reestablishing the Norton name in the hearts of riders and motorcycle enthusiasts. On the other hand, BSA still exists as an engineering firm, which is not much popular nowadays, and will take significant energy to come back into the spotlight.

Mahindra is already doing great with its passenger and commercial vehicles, while still struggling to make a similar impression with its two-wheelers. However, the new products of the company are much better in the terms of technology as well as quality, and are helping it gain a good brand value in the two-wheeler market. Buying Norton will further help the company in the advancement of its products and creating a better image in the global market. BSA, meanwhile, would be a totally different proposition as it’s likely to develop machines using Mahindra and Peugeot and market them under the BSA brand name, using the firm’s manufacturing heritage for marketing.

Buying any of the British Brands will give Mahindra a better and bigger foothold against its new rival after the launch of the Mojo, Royal Enfield, which was also a British brand earlier. Acquired by the Indian automotive firm Eicher later, Enfield is also a classic motorcycle manufacturer with a vast heritage value. The company is performing well in India and expanding its foothold worldwide as well. So, we can say that Mahindra could challenge RE with this new acquisition and investment in a brand like Norton could be a wise decision. We know that Norton motorcycles are significantly costlier than the Enfields, and that could be a major problem for the company in this challenge. However, the technical and manufacturing assistance from Mahindra and Peugeot can help Norton in production expansion and cost reduction.