KTM CEO Thinks TVS Shouldn’t Have Bought Norton
KTM CEO Stefan Pierer thinks TVS didn't make a good decision to buy out Norton.
In a recent interview, KTM CEO Stefan Pierer said that TVS Norton Acquisition isn’t a good decision. This reminds him of Mahindra’s BSA acquisition.
KTM boss beleives that after the coronavirus pandemic situation, certain consolidation of the motorcycle industry will take place. For TVS, launching a new brand in this situation won’t be easy.
We feel he wants to say that in these hard times for the industry, resurrecting an old brand and getting it into good business will be an uphill task for the Indian bike maker.
On the other hand, TVS hasn’t revealed any concrete plans of their future with Norton. What they have revealed is the fact that Norton won’t make low displacement motorcycles in the near future.
TVS will expand the reach of Norton Motorcycles to newer markets. The iconic British brand will use TVS’ global reach and supply chain capabilities for their growth.
When asked about Bajaj Triumph deal, Stefan Pierer said Rajiv Bajaj has always discussed the agreement with him. He says it’s not a problem for KTM since they’re not a heritage brand like Triumph Motorcycles.
He says with this agreement Bajaj is strengthening their production capacity and will bring some benefits to the supply chain.
For those who aren’t aware, Bajaj Auto and Triumph Motorcycles are coming up with mass market motorcycles. These bikes will have engine capacities ranging from 200cc to 750cc. Starting price for the 200cc Triumph motorcycle is likely to be under Rs. 2 lakhs.
Source – LeRepaireDesMotards.com