The TVS-Norton Deal: Everything You Need To Know
- Apr 27, 2020
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With the recent acquisition of the Norton brand, TVS added yet another illustrious name to the list of global manufacturers that now have an Indian connection. Currently, it is only the third Indian two-wheeler company, after Bajaj Auto and Classic Legends, to have a concrete deal in place with a global brand. What are these ties and what have they set out to achieve? That’s what we are about to elaborate on:
TVS’s Norton Acquisition
TVS made a huge splash of over Rs 160 crores to bag the iconic British bike maker. The Indian company hopes to revive and restore the legacy of the Norton brand. TVS identifies Norton’s positioning as a boutique manufacturer and wishes that it will flourish this time round under its wings. We might not see anything fruitful from TVS or Norton in the Indian context anytime soon. But hopefully, this venture should help TVS’s ambitions of going big and catering to the premium segment.
The Bajaj-Triumph Small Bike Partnership
The deal between Triumph and Bajaj has been over two years in the making, with the two brands finally tying the knot earlier this year. The aim is to deliver affordable yet premium Triumph motorcycles which will be made at Bajaj’s Akurdi plant on the outskirts of Pune. Triumph will make use of Bajaj’s expertise in exporting to global markets, especially in Latin American and African countries where the Indian brand enjoys a stronghold over other players.
It is categorically mentioned in the deal that Bajaj cannot use the components developed out of this venture in their future products. That means we will not see something like the 373cc KTM motor finding its way onto the Dominar 400. So what does Bajaj stand to gain then? Firstly, exposure to Bajaj engineers as these new bikes will be co-developed by the two companies. These bikes will then also be sold by Bajaj dealerships across the world. In India, these will sell out of exclusive Triumph dealerships that Bajaj themselves will be setting up in the future. In fact, the entire distribution network as well as the after sales experience of the British brand in India will be looked after by Bajaj shortly.
Classic Legends Owning The Rights To Jawa, BSA And Yezdi
Mahindra-backed Classic Legends wanted to revive the fortunes of a few defunct but still iconic motorcycle manufacturers. It bought the rights to the Jawa and BSA names, where one of the partners was already the owner of the Yezdi brand. Of the three brands under its umbrella, we have seen any activity only with the Jawa brand. The company kick-started operations in 2018 with two models, the Jawa and the Forty Two, and followed up with the Perak, a year later. It will now be interesting to see how Classic Legends manages to differentiate the identity of the Jawas with the Yezdis. Classic Legends will be keeping BSA as a premium brand for global markets, as a way to establish itself as a premium category player.
The Bajaj-KTM Story
From owning a sliver of the company to being a major stake holder, Bajaj has played a key role in making KTM a force to be reckoned with. KTM has enjoyed much success in recent times, the sales of its small capacity single-cylinder motorcycles performing better than anyone ever expected. With the sales of the Dukes and RCs soaring through the roof, KTM even managed to pip Harley-Davidson in global sales last year. With this partnership, Bajaj products did also become more advanced. The company gained access to technologies -- like liquid-cooling, a four-valve head and more -- that weren’t to be found until after the alliance bore fruit.
More recently, Bajaj Auto has also helped KTM-owned Husqvarna enter the Indian market. The stylish Swedes bring across a different flavour from their racy Austrian cousins. Husqvarna has started India operations with the Svartpilen 250 and the Vitpilen 250, bikes specifically designed for the Indian market. India is also the first country in the world to get the Husky 250s.
Baby Beemers From Hosur
BMW Motorrad saw the success that KTM enjoyed with its low displacement Dukes. The Bavarian brand too wanted to make small capacity motorcycles to grow its business. While engineering would remain its forte, it had to seek an Asian partner for low cost manufacturing. Thus, a deal was struck between BMW and TVS Motors to build these baby Beemers. The G 310 siblings serve their purpose well in the global context, bringing new riders as well as born-again riders to the family. The G 310 R undercuts the 390 Duke in terms of pricing in most foreign markets, which to some degree has helped its cause even further. Not only does TVS manufacture these bikes, but it was also able to plonk the same 312cc motor into its first supersport motorcycle: the Apache RR 310.
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