India’s TVS Motor acquires sporting motorcycle brand ‘Norton’ in an all-cash deal

India: TVS Motor Company Ltd acquired Britain’s Norton Motorcycles for 16 million pounds (approx. $ 20 million). The acquisition was made through one of the overseas subsidiaries of TVS motor. The deal was concluded by Project 303 Bidco Ltd, which is a newly incorporated company set up under TVS Motor’s Singapore subsidiary. Norton Motorcycles will continue to hold its distinctive identity with dedicated and specific business plans.

"This is a momentous time for us at TVS Motor Company. Norton is an iconic British brand celebrated across the world and presents us with an immense opportunity to scale globally," TVS Company’s Joint Managing Director said in an official statement.

"This transaction is in line with our effort to cater to the aspirations of discerning motorcycle customers. We will extend our full support for Norton to regain its full glory in the international motorcycle landscape," he added.

Located in Birmingham, Norton Motorcycles is a 122-year-old motorcycle company, which was founded by James Lansdowne Norton. The company initially supplied bicycle parts before entering in fully assembled bicycles production. The reason behind company’s acquisition is said to be insufficient cash flow due to which Norton Motorcycles had trouble fulfilling their pending orders.

According to TechSci Research, this acquisition will enable TVS Motor Company to scale up its two-wheeler business, globally. The company also assured that it will provide full support to Norton Motorcycles in regaining its full glory in the international motorcycle market. TVS Motor also revealed its plan of launching new products of Norton Motorcycles which include Commando, Dominator and V4 RR. This deal would also enable Norton Motorcycles to leverage TVS Motor Company’s supply chain capabilities and global reach to expand to new markets other than Britain.

According to recently published report by TechSci Research,  “Global Two Wheeler Market By Vehicle Type (Scooter/Moped and Motorcycle), By Engine Capacity (Up to 125cc, 126-250cc, 250-500cc and Above 500cc), By Region, Competition, Forecast & Opportunities, 2014 – 2024”, global two wheeler market stood at around $ 95 billion in 2018 and is projected to surpass $ 125 billion by 2024. Anticipated growth in the market would be driven by higher fuel efficiency, lower emissions, easy maneuverability and price attractiveness. Moreover, launch of new models, growing number of female drivers and increasing congestion levels are expected to boost sales of two wheelers across the globe. Increasing number of two wheeler clubs, rising penetration of Chinese players and growing preference for two wheeler taxis for mobility is anticipated to have a positive impact on the market during forecast period.

According to TechSci Research report, “India Electric Two Wheeler Market By Vehicle Type (Electric Scooter and Electric Motorcycle), By Voltage Capacity (48-59V, 60-72V, 73-96V & Above 96V), By Battery Type, By Motor Placement, Competition Forecast & Opportunities, 2013-2023”, India electric two wheeler market stood at around $ 27 million in 2017 and is forecast to grow at a CAGR of over 41% to reach $ 200 million by 2023, on account of growing need to curb air pollution levels across the country. Government incentive schemes, growing distributor & dealership network, rising online sales, and increasing affordability of electric two wheelers being provided by leading automobile manufacturers are some of the other key factors that are expected to boost demand for electric two wheelers in India.