Returning to England after the War he was demobilised in June 1919. His first post-War job was with Aston Motor Accessories of
Wolverhampton. He then moved to AMAC Carburettors and began again to ride part-time for AJS. He joined the AJS team for the
1920 Isle of Man TT, and was entered for both the Junior and Senior. The AJS machines suffered engine problems and he had to retire early in both events with broken valves. In 1920 Davies had many competition successes. In July, riding an AJS in the Scottish Six Day trial, he won the gold medal at Stile Kop, making the fastest time, won another gold medal in the
Darlington ACU trial, and broke 14 records at
Brooklands, including flying kilometre, flying mile, and average mean speed. By the end of the year, Davies became the full-time AJS Competitions Manager. He became involved in TT machine development, and by early 1921 the TT machinery was much improved. The 1921 AJS team obtained 1st, 2nd, 3rd, 4th, 6th and 8th places in the Junior
1921 TT event. The winner was Eric Williams. Davies finished in second place, even after having a puncture in the second lap. He finished first in the Senior TT on a 350, a full two minutes ahead of the runner-up,
Freddie Dixon on an 'Indian'. This was the first time a 350 cc motorcycle won the Senior. In trials, Davies won the team event, with Harry Harris and Eric Williams in the ACU six day and the gold medal. On 24 May 1921, Davies broke four world records at Brooklands: • at • 1 hour at • at • 2 hours at The 1922 and 1923 TTs, however, were disasters. With the AJS machines suffering engine problems, he did not manage to finish a race. Davies left AJS in 1923 and moved to Hutchinson Tyres. ==Freelance==