Published: Mon, May 08, 2017
Business | By Pat Ferguson

Royal Enfield plans to invest in Italian superbike Ducati

Royal Enfield plans to invest in Italian superbike Ducati

Eicher Motors-owned two-wheeler maker Royal Enfield has been approached by German auto maker Volkswagen (VW) to buy its Italian motorcycle maker Ducati Motor Holding SpA, The Times of India today reported. According to a report in Reuters, it was earlier said that Volkswagen is considering a possible sale of Ducati, the company seeks a critical fix, as the group is trying to integrate it's operations. As Royal Enfield aggressively looks at expanding its global footprint, a brand like Ducati can only improve RE's reputation and worldwide standing further. We are always open to thoughts and ideas. "So basically, without saying absolutely no to anything - because we never say never - we are so zeroed in on our own opportunity that we do not want anything to distract us", said Lal. Other suitors may include global companies such as Suzuki, Honda, Polaris and Harley Davidson, as per reports. Earlier, there have been reports that Hero MotoCorp is among the top contenders to buy Ducati and now, Royal Enfield has also joined the list. As per the current market value, the brand is estimated at over Rs 10,000 cr.

The talks of a possible buyover come at a time when the Volkswagen Group is battling with a financial crisis as a fallout of the Volkswagen emission scandal which included hundreds and thousands of vehicles with a cheat device to tweak emission figures.

On its part, Eicher Motors has been witnessing one of the best periods in its history with the Royal Enfield brand. Royal Enfield can get a boost through a buyout as it doesn't have 800-1200cc bikes in its portfolio.

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Royal Enfield, which has the market capitalisation of about Rs 52K cr, claims a market share of over 95% in its segment.

Ducati's XDiavel S was launched in India in April 2016.

Volkswagen group is now struggling with the losses that it had to face for the Diesel gate scandal. "In India, you have robust two-wheeler players, who have competence in terms of engineering, production capacity".

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