The third-largest motorcycle company in India plans to continue production at Donington Hall for about six months and then move to a new headquarters nearby in Leicestershire.
Norton’s Donington Hall factory
TVS joint managing director Sudarshan Venu has big plans for Norton including:
Doubling the British workforce;
Launching new products, possibly smaller-capacity models;
Investing tens of millions in the company; and
Moving to a larger factory with the capacity to build 2000 handmade bikes a year.
Hi-tech needed
We hope the new facility is more hi-tech than the current factory which one visitor described as a “very musty old building that desperately needed maintenance”.
The visitor who asked for anonymity says the bikes were hand made, “but on carpet tiles where you can still see where the desks were”.
“There was a complete lack of technology. The bike I looked at in pre-delivery was not being tuned on a dyno – no laptop plugged in to the ECU.”
New CEO
TVS have also appointed interim CEO John Russell who has a background in management consultancy, engineering, and automotive.
Among his many postings are a stint with Harley-Davidson.
Vanu says Norton will “retain its distinctive identity with dedicated and specific business plans”.
TVS have confirmed they will continue to build the Commando, Dominator and V4 RR as well as the promised Atlas series.
Norton Atlas Ranger and Nomad
In further good news for Australian Norton fans, Varghese tells us they will continue with their current dealer network with importer James Mutton of Brisbane Motorcycles.
Respected market analysts GlobalData say the sale to India’s third-biggest motorcycle manufacturer with sales of more than 750,00 a year significantly marks TVS motorcycles’ entry into the global mid and high-capacity premium bikes.
Norton V4 RR
Norton Atlas Ranger
GlobalData Senior Automotive Consultant Bakar Sadik Agwan says it will “strengthen the India-based brand’s position in international markets”.
“TVS, which has presence in over 60 markets globally, gets an opportunity to foray into high-powered and premium bike segments,” he says.
“The TVS-Norton deal now makes it quite evident that India two-wheeler makers are keen towards opportunities to scale globally and expand horizontally through tech-partnerships and acquiring manufacturing know-how of ‘classic’ motorcycles.”
In other words, the sale marks a turning point where India could become the next motorcycle powerhouse.
Indian powerhouse
TVS factory
The Indian motorcycle market is already the largest in the world with sales of a gob-smacking 21 million last year.
That eclipses China which has dropped from 27.5m in 2008 to 17m last year.
But most of the bikes sold in India and exported are low-capacity models with low profit margins per vehicle.
TVS, which is India’s second-biggest exporter of motorcycles behind Royal Enfield, now has the ability to enter the higher profit large-capacity premium market.
This is yet another example of how India is becoming the new motorcycle powerhouse.
Many of the world’s leading motorcycle brands are now firmly established in India with production and assembly factories, joint projects and large dealerships, including BMW, Ducati, Harley-Davidson and Triumph.
Fellow British brand Triumph has been working for some years on a global partnership with Pune-based Bajaj Auto to build mid-capacity (200-750cc) motorcycles. Their partnership formally started in January.
It should be remembered that another iconic British brand, Royal Enfield, gradually became Indian and under Eicher ownership has become one of the most successful brands in the world with sales of more than 800,00 a year.
Norton Motorcycleswill continue to be British made and the new owner, India’s TVS Motor Company, promises to go ahead and build the pledged Atlas (pictured above) and V4 RR models.
TVS bought the troubled British manufacturer in a $A31m cash deal at the weekend.
The Indian company plans to continue production at Donington Hall and then move to a new headquarters nearby in Leicestershire.
Norton’s Donington Hall factory
New owner
TVS Corporate Communication VP Varghese M Thomas tells us the new owner will continue to build the Commando, Dominator and V4 RR as well as the promised Atlas series.
That is despite the Atlas 650cc parallel twin engine being sold by former Norton CEO Stuart Garner to a Chinese company.
In further good news for Australian Norton fans, Varghese tells us they will continue with their current dealer network with importer james Mutton of Brisbane Motorcycles.
James says they have returned deposits to those who paid for bikes not yet delivered, but if they decided to go ahead wth their order, they would not lose their place in the queue.
Norton V4 RR
The 1200cc V4RR was priced at £28,000 in the UK and $59,990 in Australia plus on-road costs, but we don’t believe any models have yet been delivered to customers.
Likewise, the Atlas models which have powered by a 650cc which is basically half the 1200cc V4’s engine, were expected to be released this year for £9995 (Nomad) and £11,995 (Ranger), but have not yet been produced. They should cost around $A20,000 here.
Atlas Ranger
Atlas Nomad
Varghese says he cannot answer our questions about warranty and spare parts “at this point in time”.
There is also no word yet on whether any motorcycles or at least components will be built by TVS in India.
India was once said to be the jewel in Great Britain’s crown, that has long ceased to be the case. Likewise Norton was once the jewel in Britain’s motorcycle industry but has met an ignominious end too many times in its long history.
Nortons fall from grace this time around has been a shocking tale of financial mismanagement that will likely see Stuart Garner in court on various charges – Image Phil Aynsley
Few of those disintegrations have been as seemingly dishonourable as the most recent suffered under the stewardship of the now largely disgraced Stuart Garner.
Stuart Garner (right), has been largely pilloried for the financial state that Norton ended up in before the Indian bail-out. TT legend John McGuinness (left) was also left with a sour taste after his dealings with Garner.
Garner was the great new hope for Norton when he bought the rights to the Norton brand in 2008 but in January of this year those hopes were dashed. And with that downfall it seems that dozens of customers that have paid for motorcycles will never receive them. The misery continues with pension funds also allegedly defrauded and workers left without entitlements.
Norton Commando 961 SF was on the new generation Nortons that made it into production
The next re-birth of the Norton brand will be under Indian stewardship via the 42-year-old and very successful TVS Motor Company.
Based in Chennai, TVS is India’s third largest motorcycle company with revenues approaching US $3 billion through annual sales of 3 million units. It is also India’s second largest exporter with footholds in over 60 countries for TVS Motor, while the umbrella TVS Group is present in 129 countries with total revenues of US$8.5 billion.
TVS Ntorq 125
The company has manufacturing plants located at Hosur in Tamil Nadu Mysore in Karnataka and Nalagarh in Himachal Pradesh. TVA also has a manufacturing facility in Indonesia at Karawang near Jakarta.
TVS are also on the e-bike front with the TVS iQube EV
TVS was the first Indian company to produce a four-stroke motorcycle (complete design, development and production in India – Royal Enfield was British), the first Indian motorcycle brand to employ ABS and catalytic convertors and more recently debuted India’s first bluetooth equipped scooter in the TVS Ntorq 125.
TVS also makes powered three-wheeler machines
Within Australia TVS has never really gained much of a footing but their scooters have found a market here from time to time.
TVS deal with BMW produced the G 310 R and GS for BMW, and the TVS Apache RR 310 for the Indian company
TVS has manufacturing alliances with the likes of BMW via a partnership that started in 2013 and led to the jointly produced G 310 range, while previous close alliances with Suzuki Japan that have now expired. TVS also enters the Dakar Rally in conjunction with Sherco and 2020 marked the sixth year of their competitive endeavours together.
Michael Metge tops the 2018 Baja Aragon Podium with TVS Sherco
With the current coronavirus pandemic holding a Sword of Damocles over the Indian sub-continent it is quite a brave move by TVS who are already navigating troubled waters. Shares of TVS Motor Company had fallen 36 percent this year but are rebounding somewhat after the acquisition of Norton.
In the short term, the GBP 16 million all-cash acquisition of Norton will see the British brand, for now, continue and hopefully step up production at Norton’s Donington Park facility in Leicestershire with previous staff employed.
The deal was concluded by Project 303 Bidco Ltd, a newly incorporated company set up under TVS Motor’s Singapore subsidiary specifically to acquire Norton.
TVS joint managing director Sudarshan Venu
“This is a momentous time for us at TVS Motor Company. Norton is an iconic British brand celebrated across the world. With its exciting range of products, Norton presents us with an immense opportunity to cater to the aspirations of discerning motorcycle customers around the world. We will extend our full support for Norton to regain its rightful glory. Norton will continue to retain its distinctive identity with dedicated and specific business plans. TVS Motor Company will work closely with customers and employees in building the success and pre-eminence of the Norton Motorcycles brand and we look forward to growing together globally in the years to come.”
Norton’s CS1 from 1927 was the company’s first over-head cam design. Designed as a TT racer but also found success as a TT replica road bike in the 1930s. Source: MCNews.com.au
Troubled Norton Motorcycles has been rescued with the sale of “certain assets” to an indirect subsidiary of Indian motorcycle company TVS over night (17 April 2020).
Joint administrators BDO UK say the “cash deal” was for £16 million (about $A31.4m, $US20m, €18.4m).
A this point it is not confirmed how they will be paid and by whom.
Business restructuring partners Lee Causer, Ryan Grant and Danny Dartnaill say TVS Motor Company’s Indian subsidiary has “acquired the business and certain assets of Norton Motorcycles”.
It also includes a licence to occupy the existing Donington Hall factory for the next six months.
Donnington Hall where Norton continues to build motorcycles
Norton sold
“The purchaser has agreed to work closely with customers in building the success and pre-eminence of Norton, and employees of Norton will transfer to the purchaser,” the administrators say in a statement.
“This acquisition will also unlock strong synergies between both the brands and propel Norton’s growth by leveraging TVS Motor Company’s global reach and supply chain capabilities.
“In challenging circumstances, we have been able to secure the future of the Norton brand. We are delighted that the sale to TVS Motor Company will protect jobs and provide a highly beneficial outcome to creditors.”
TVS Motor Company
TVS motorcycle
TVS factory
TVS Motor Company is the third largest motorcycle manufacturer in India with revenue of more than $A4.4 billion last year.
They also make BMW G 310 motorcycles for the world market.
TVS joint MD Mr. Sudarshan Venu says it is a “momentous time” for their company.
“Norton is an iconic British brand celebrated across the world,” he says.
“Norton with its exciting range of products presents us with an immense opportunity to cater to the aspiration of discerning motorcycle customers around the world. We will extend our full support to Norton to regain its rightful glory.”
The administrators had more than 300 expressions of interest, 29 formal offers and was negotiating with eight potential buyers.
Norton’s Donington Hall factory
Norton Atlas Ranger and Nomad
TVS factory
Mahindra relaunches Jawa in 2018
Norton’s Donington Hall factory
Norton V4 RR
“Poster boy” Garner