The company dates back to 1847 when Ariel made an early pneumatic-tyred wheel for horse drawn carriages. The name was revived by James Starley and William Hillman in 1870 when they invented the wire-spoke wheel which allowed them to build a lighter weight bicycle and named it Ariel (the spirit of the air).

They put the name on the factory where they made penny-farthing bicycles and sewing machines. In 1885 James Starley's nephew, John Kemp Starley, invented the Rover Safety Bicycle - a rear-wheel-drive, chain-driven bicycle with two similar-sized wheels, which is essentially the design still used on bicycles today. Use of the name lapsed but in 1896 it appeared again, this time on motorised transport.

The first Ariel vehicle was a Tricycle that used a 2.25 hp De Dion engine mounted at the rear. More tricycles were produced and motorised quadricycles were added in 1901 as Ariel then moved into car production.

In 1902, Components Ltd., owned by Charles Sangster, bought the company and began producing motorcycles, but the company suffered several financial crises including spells in receivership in 1911 and the early 1930s. In 1932, Components Ltd went bankrupt, and Jack Sangster, Charles Sangster's son, bought the Ariel subsidiary from the receivers at a bargain price. The company was renamed Ariel Motors (J.S.) Ltd, and promptly resumed production