TVS Motor Company plans to continue investing in Norton, which it acquired in 2020, for the next eight quarters as it seeks to redefine the product portfolio to pave the way for growth.
Speaking to analysts in the post Q2 earnings call, KN Radhakrishnan, CEO of TVS Motor Company, said, "We have a series of products in design and development and we are getting closer to product readiness, we will continue to invest in the next 8 quarters in Norton. At present, we are trying to meet the pending requirement of Norton customers, but for future, we are completely redefining Norton and the TVS team is working with them to redefine the product in the pipeline. A very clear product pipeline has been set up and I am pretty confident, going forward you will see product Norton is going to delight the customers.''
During the year, TVS Motor Company invested about Rs 180 crore in the British brand. The South Indian two-wheeler maker has plans of investing Rs 800 crore during FY24 and another Rs 1,000 crore in capex, which is going largely into EVs. As part of the new vision defined for Norton post-acquisition a world-class team led by Robert Hentschel had started working on bringing Norton back to "its rightful place".
A Rs 1,000 crore commitment in Norton was to go towards electrification, developing cutting-edge technology, world-class vehicles, manufacturing, sustainability and the future of mobility. To cater to all this, a new manufacturing facility in Solihull, West Midlands was opened in 2022.
On sustained questions from analysts on the future of Norton, Radhakrishnan assured, "You people have questioned us on PT TVS (Indonesian subsidiary) and we are now consistently delivering profits quarter after quarter. You give us a few more quarters and Norton will start delivering very good results for the company."
While the company has been non-committal on the introduction of Norton brand in India, it is almost a given that the brand will participate in the fast-growing space in the coming few years led by its (erstwhile British) rival Royal Enfield. Already there is fresh competition from Triumph and Harley Davidson, both of whom have got off to a good start in the last few months.
The fresh infusion by TVS Motor in Norton is expected to generate 250-300 direct jobs till 2025 and another 500-800 indirect jobs across the supply chain. The brand-new facility set up at Solar Park, Solihull, UK, also houses Norton’s state-of-the-art manufacturing capability and the company’s new global design and R&D hub.
The CEO of TVS Motor Company who is also known as KNR said the company is aiming to build the TVS brand globally and the focus is not just the developing economies but also the developed world.
With inputs from Shruti Mishra.