TVS Motor Company Acquires Norton Motorcycles
Modified On May 8, 2020 10:18 AM By Gaurav Sadanand
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The acquisition amounts to Rs 153 crores
Iconic British brand Norton Motorcycles had been facing financial turmoil for a while now, which would have eventually ended in bankruptcy. In accordance with a court order, Norton Motorcycles had been placed into administration, wherein, accounting firm BDO was to take a call on how taxes would be recovered while protecting investors’ interests.
Rumours suggested that Hosur-based bikemaker had plans to buy the British brand. Luckily, TVS Motor Company stepped in to save the day by acquiring certain assets in Norton Motorcycles in an all-cash deal via one of its overseas subsidiaries.
The sum? A whopping £16 million equivalent to Rs 153 crores. The acquisition would aid TVS’ global reach and supply chain capabilities to expand into new markets. And in a broader sense, it also gains access into the classic bike segment, an area dominated by Royal Enfield. TVS earlier showed its interest in the cruiser segment by showcasing the Zeppelin concept. However, TVS’ sporty heritage raised more questions than answers.
Sudarshan Venu, Joint Managing Director, TVS Motor Company, clearly states, "Norton will continue to retain its distinctive identity with dedicated and specific business plans." But we could expect to see a cruiser co-developed by TVS and Norton being sold in India in the foreseeable future. Norton has already made its presence felt in India thanks to Indian partner MotoRoyale.
It even had plans to locally assemble the Norton Atlas 650, a 650cc parallel-twin motorcycle built by Chinese brand Zongshen. The bike was supposed to enter India via the CKD route with an aggressive price tag. It has been styled to look like a scrambler with raised fenders, dual-purpose tyres with spoked wheels, a bash plate, an upside-down fork, and a monoshock.
What adds weight to this is the fact that Triumph has joined forces with Bajaj to build low-cost but premium motorcycles for India as well as the global markets. Utilising Norton’s multi-cylinder platform could also help TVS step into the mid-capacity performance segment.
A lot of questions about the acquisition still remain unanswered, but should hopefully unfold over time. Until then stay tuned to BikeDekho.
