Royal Enfield revving up to buy Ducati?

Royal Enfield Is Planning To Buy This Italian Motorcycle Manufacturer

While the company went bankrupt in the United Kingdom in 1957, the Indian arm continued to produce motorcycles and continues to do so even today. Europe's largest carmaker has tasked investment banking boutique Evercore with evaluating possible options including a sale of the thoroughbred brand, which VW unit Audi acquired in 2012.

Owned by Volkswagen's premium vehicle division, Audi, Ducati was acquired by the German auto major in 2012 for 860 million Euros (about Rs 6,000 crore). Royal Enfield has left no stone unturned and is expanding aggressively in the market overseas.

As reported by a leading daily, TOI, Royal Enfields' parent organisation, Eicher Motors is examining the important terms related to the Ducati acquisition.

Commenting on the possible acquisition, Mr Sid Lal, CEO, Eicher Motors said, "We can't talk to you on such things".

Ducati sells its motorcycles in more than 80 countries around the world with a primary focus in the European, North-American and Asian markets. "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", Lal further said.

Sources told the newspaper however that the bike-manufacturer was keen to add Ducati to its stable.

In 2012, Volkswagon's vehicle division Audi had acquired Ducati for about Rs 6,000 crore. Its current portfolio is dominated mainly by motorcycles powered by engines between 800cc and 1,200cc, a segment which is completely missing in Royal Enfield's portfolio.

Royal Enfield had last week said it plans to invest Rs 800 crore during this fiscal on various activities including its upcoming manufacturing facility near Chennai and new product development. Other interested parties may include players in the motorcycle market such as Suzuki, Honda, Polaris and Harley Davidson.

A report came last month as well of a possible sale of Italian company following the diesel emissions scandal.

In April 2017, Royal Enfield posted its highest-ever monthly sales of over 60,000 bikes in one single month.


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