TVS Motor Company intends to invest in Norton, which it purchased in 2020, for the next eight quarters as it strives to redefine the product portfolio to pave the road for growth.
KN Radhakrishnan, CEO of TVS Motor Company, said in a post-Q2 earnings call to analysts, “We have a series of products in design and development and we are getting closer to product readiness; we will continue to invest in Norton over the next eight quarters.” We are currently attempting to meet Norton customers’ pending requirements, but in the future, We are entirely reimagining Norton, and the TVS team is collaborating with them to radically reimagine the product in the pipeline. A very clear product pipeline has been established, and I am convinced that in the future, you will see products from Norton that will delight clients.”
TVS Motor Company invested approximately Rs 180 crore in the British brand last year. The South Indian two-wheeler manufacturer intends to invest Rs 800 crore in FY24 and another Rs 1,000 crore in capex, the majority of which will go toward EVs. A world-class team led by Robert Hentschel had begun working on restoring Norton to “its rightful place” as part of the new vision outlined for Norton following the acquisition.
Norton made a Rs 1,000 crore commitment to electrification, developing cutting-edge technology, world-class vehicles, manufacturing, sustainability, and the future of transportation. In order to meet all of these demands, a new production plant in Solihull, West Midlands, was opened in 2022.
In response to analysts’ persistent doubts over Norton’s future, Radhakrishnan stated, “You people have questioned us on PT TVS (Indonesian subsidiary), and we are now consistently delivering profits quarter after quarter.” Give us a couple more quarters, and Norton will begin to produce really good profits for the corporation.”
While the firm has been noncommittal about introducing the Norton brand in India, it is almost a guarantee that the brand will engage in the fast-growing industry in the next years, driven by its (formerly British) rival Royal Enfield. There is already new competition from Triumph and Harley Davidson, both of which have made a strong start in recent months.
TVS Motor’s new investment in Norton is estimated to create 250-300 direct jobs and an additional 500-800 indirect jobs throughout the supply chain by 2025. Norton’s state-of-the-art production capability, as well as the company’s new worldwide design and R&D base, are also housed in the brand-new facility in Solar Park, Solihull, UK.
The CEO of TVS Motor Company commonly known as KNR stated that the company’s goal is to establish the TVS brand globally with a focus not only on emerging economies but also on the developed world.
2023-11-01 20:03:06
