TVS Motor Company
- TVS Motor Company will continue to invest in Norton for the next eight quarters, with a focus on redefining the product portfolio to pave the way for future growth.
- The company plans to invest Rs 800 crore in Norton during FY-24 and another Rs 1000 crore in capex, which is going largely into EVs.
- The investment will go towards electrification, developing cutting-edge technology, world-class vehicles, manufacturing, sustainability, and the future of mobility.
- TVS Motor Company is also working on bringing Norton back to its rightful place in the global motorcycle market.
- The company is aiming to build the TVS brand globally, with a focus on both developing and developed economies.
Norton
TVS Motor Company is gearing up to continue its investment in the UK-based premium motorcycle brand, Norton, for the upcoming eight quarters. The acquisition of Norton by TVS took place in 2020. K N Radhakrishnan, the CEO of TVS Motor Company, highlighted the company’s dedication to redesigning Norton’s product lineup to cater to future growth demands. The main aim is not just to meet the current requirements of Norton’s clientele but also to redefine the brand’s identity and product range for the future.
In the past year, TVS invested around Rs 180 crore in Norton. The company has mapped out a plan to invest Rs 800 crore in the fiscal year 2024, along with an additional Rs 1000 crore primarily for electric vehicles (EVs). In 2020, post the acquisition of Norton, TVS had announced a specific investment plan of up to Rs 1000 crore for the brand.
Investment
This investment in Norton aims to support various areas, including electrification, advanced technology development, manufacturing of world-class vehicles, sustainability initiatives, and the progression of mobility. The brand’s new production facility, located in Solihull, West Midlands, began its operations in 2022.
Despite queries regarding Norton’s future prospects, Radhakrishnan assured analysts of Norton’s promising potential, drawing a parallel to PT TVS’s success. The introduction of the Norton brand in the booming Indian market seems imminent, especially with competitors like Royal Enfield, Triumph Motorcycle, and Harley Davidson making significant strides.
Electrification
TVS Motor’s further investment in Norton will likely produce 250-300 direct jobs by 2025 and an additional 500-800 indirect jobs across the supply chain. Norton’s advanced manufacturing hub, along with its global design and R&D centre, is situated at the newly established facility in Solar Park, Solihull, UK.
Conclusion
Lastly, the CEO emphasized TVS Motor Company’s global aspirations, aiming to expand the brand’s presence not just in emerging markets but also in the developed world.
TVS Motor Company’s strategic decision to invest further in Norton underscores its vision for the future – one that is rooted in innovation, sustainability, and global expansion. As competition in the motorcycle industry intensifies, TVS’s approach of revamping Norton’s product lineup, combined with its focus on both emerging and developed markets, highlights its commitment to remaining a dominant player in the industry. The ensuing years will be crucial to observe as TVS’s investment decisions begin to bear fruit, potentially reshaping the motorcycle market dynamics globally.
