TVS acquired British Norton Motorcycles.

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              TVS acquired British Norton Motorcycles.

Amidst the gloom triggered by the COVID-19 pandemic biggest news from the automotive sphere came with the buy-out of Norton by TVS Motor Company. Indian companies currently own five European bike brands together with three that originated within the UK. In this edition of the automobile we take a glance at where Norton is and what lies ahead for TVS. But first, here may be a complete check out all the other top headlines. 

Car, SUV sales nosedive 51% in March --The lockdown declared by the govt. to prevent the unfold of novel coronavirus, or COVID-19, resulted in an exceedingly 51% decline in passenger vehicle sales (car, SUV and van) for March at 143,014 units as compared to a similar month last year. The passenger vehicle (PV) segment closed the year in red for the first time in six years. Last time the trade recorded a drop was in 2014. The phase had been under pressure for the full of FY 20 because of a series of steep hikes in insurance prices, poor buyer sentiments and hike in costs.

Bajaj Auto proposes pay cuts -- India’s third biggest two-wheeler manufacturer has planned a 10% salary cut for manufacturing plant staff if production doesn't resume on 21^st April.The projected cut will be for little over half of April and till the lockdown is ended on 3rd May. As per guidelines issued by the Ministry of Home Affairs (MHA) on 15^th April, the Govt. is permitting industries to begin operation in rural areas and SEZ. Automakers open online booking despite uncertainty on delivery date. There was no certainty that the Centre’s three-week lockdown period would be ended on 14^th April, as the rising cases of COVID-19 across the country. Yet, one or two manufacturers inspired and promoted online purchase of vehicles though, it may not be possible to commit a date of delivery for the bookings because of uncertainty encompassing the lockdown. 

BMW pips Mercedes to the top spot in Q1 - BMW has regained the top spot in India's luxury automobile market after a gap of seven years, beating Mercedes-Benz. The sales numbers shared by the two corporations pertain to the January - March quarter (Q1) of 2020. BMW sold 2,482 units in Q1 2020 whereas Mercedes-Benz sold 2,386 units. BMW India sales comprised 2 brands - BMW (2,365 units) and mini (117 units). 

Maruti Suzuki India LTD has revised the FY 20 sales forecast of its Indian subsidiary.  Maruti Suzuki has same sales can plunge 20% on back of a dismal first half performance. The Japanese maker had earlier projected a 4% growth.

Hyundai Motor India Ltd (HMIL) had reported a year-on-year 47% decline in total sales (domestic and exports) at 32,279 units for March 2020, the car manufacturer informed in an exceedingly restrictive filing to Bombay stock market. Hyundai had sold 61,150 units within the same month last year. Domestic sales were down 40 % at 2,626 units as against 44,350 units in March 2019, it added.

Mahindra & Mahindra announced its automobile sales performance for the year ended 31 March 2020, that stood at 4,76,043 vehicles lower by 22 % compared to 6,08,596 vehicles throughout FY-19. 

Tata Motors on March 2020, same its total automobile sales fell 32.44% to 40,634 units in February 2020 compared to 60,151 units in February 2019. 

Ford India Registers 5% Sales Growth In February 2020 – EcoSport, Endeavour, aspire SIAM seeks GST cut, scrap-page policy.

Auto industry body SIAM said it has sought-after temporary GST rate cut on vehicles and introduction of incentive primarily based scrap page policy from the govt. at the earliest so as to revive the sector amid the coronavirous pandemic. While appreciating RBI's announcement to support  NBFCs and MSME sector by infusing liquidity within the system, the Society of Indian Automobile manufacturers (SIAM) sought-after many 'key interventions' for the automobile sector. 

TVS buys Norton for Rs 153

TVS buys Norton for Rs 153 crore TVS buys Norton for Rs 153 crore TVS Motor Company, India's fourth largest two-wheeler manufacturer, on april 17 announced the acquisition of Britain's iconic sport bike brand. Norton in an all-cash deal. The Chennai-based company pays GBP 16 million (Rs 153.2 crore) by acquiring certain assets of Norton Motorcycles (United Kingdom) (in administration) through one of its overseas subsidiaries. This is the first-ever overseas acquisition by TVS Motor Company in its 42-year recent history that has got to its credit the launch of moped, scooters and motorcycles that are mostly powered by engines less than 200cc. Norton’s engine range starts at 1000cc, putting it in same league as MV Agusta, FB Mondial, Harley-Davidson, Aprilia, Kawasaki and a number of others. Norton brings with itself an identical, century old brand heritage that 3 other India’s companies are also keen to explore. Bajaj automobile joined hands with Britain’s 135 year old motorcycle brand Triumph in January this year to launch a series of mid-capacity motorcycles for India and the world markets

Mahindra Group acquired another British bike brand BSA in 2016, whereas at the same time securing a brand license agreement to provide motorcycles beneath the Jawa and Yezdi brands. The Mumbai-based firm conjointly owns the 122 year old Peugeot Motorcycles of France. But perhaps the most well-known heritage brand success story lies with Royal Enfield. Conjointly a British brand Royal Enfield was revived by Eicher Motors ceo Sidhartha Lal after the struggling brand was sitting on the brink of bankruptcy.

Lal’s sustained efforts with Royal Enfield are just like John Bloor when he founded Triumph Motorcycles after the original Triumph Engineering went into receivership in 1983. Both brands are run productively and are set to challenge one another soon. As with Norton a petition was created by United Kingdom citizens some months past to Bloor to take over Norton’s management and ‘keep it British’ since both brands have an identical storied past and are square measure based mostly within the Leicesters hire county. Triumph with politeness declined the provide stating that there's enough on its plate given its partnership with Bajaj.

Soon when Norton Motorcycles slipped into administration three weeks when being in court for non-payment  of GBP 300,000 in taxes owned to HM. Revenue and Customs. Shortly afterward the company ceased producing in February however not before dishonoring confirmed orders from customers based mostly in Australia and New Zealand.

Norton was bought by businessman Stuart Garner in 2008 the similar year when Lehman Brothers collapsed. Garner, UN agency became Norton’s fifth owner, tried to revive the poorly business when production of the bikes stopped beneath its previous house owners managed from the USA. Garner pushed Norton’s business forward. He moved producing to a factory that was quite five times larger at Doningtons Hall estate when building and delivering quite 2000 motorcycles to customers round the world. Norton even came back to the famed TT race control at Isle of Man under Garner. But economic instability, worries of Brexit, stricter emission norms, fund crunches, rising competition and a last a pension fraud forced Norton into financial condition. 

Will Norton's fate change now? 

Lal had revived Royal Enfield sound the brand’s superior skill within the Indian market 1st before taking it world. BMW took facilitate from TVS to create motorcycles that value but less then half their previous entry vary. Europe’s largest bike maker KTM partnered Bajaj automotive vehicle. Bajaj Auto to start doing something similar several years earlier. Can Sudarshan Venu, joint managing director of TVS Motor Company, who has led the Norton buy-out, do a Bloor? Can TVS afford to make big investments in reviving Norton’s business including supporting the development of premium models? Will TVS have to look at India’s cost model like others to bring business stability?