TVS Reportedly Planning To Buy British Brand Norton Motorcycles
Modified On Apr 22, 2020 04:46 PM By Praveen M.
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The British bikemaker which has been in financial trouble for some time now has been put up on sale
[UPDATE: TVS has acquired Norton Motorcycles in an all-cash deal. Head here for more details]
British bikemaker Norton Motorcycles has been facing financial issues over irregularities in the three pension fund schemes that were used to make investments in the brand. In January, the company ran out of money to pay what it owes in taxes, which was around an equivalent of Rs 2.84 crore. Hence it went into administration under a business advisory firm, BDO LLP. The iconic British brand is up for sale and online reports suggest that Hosur-based auto major TVS Motor Company is considering making a bid for it.
If TVS indeed makes a bid and buys out the company, it will help the former come up with a twin-cylinder platform - something the bikemaker currently lacks in its lineup. With Norton, it will also help the company build a strong base in the premium segment. Currently, the highest displacement motorcycle sold by TVS is around 300cc. That said, TVS’ current partnership should not be affected as the marriage was mostly based on BMW Motorrad designing and developing the engines and using TVS’ cost-effective manufacturing prowess.
On the other hand, Norton with the help of its Chinese partner Zongshen had unveiled the more affordable Atlas 650 scrambler range back in November 2018. In fact, Norton’s India partner, MotoRoyale from the Kinetic Group, had earlier planned to launch the bike in India this year via the Completely Knocked Down (CKD) route. It now remains to be seen what would happen to both Zongshen and MotoRoyale amidst Norton’s financial mess.
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We reached out to TVS regarding the matter and here’s the company’s response: “This query is speculative in nature and as per our policy the TVS Group does not comment on any market speculations.”
The report also states that the Indian brand hasn’t made a decision to make a formal bidding over Norton. More details are expected to surface in the coming months, so stay tuned.
