Royal Enfield Could Buy Ducati from Volkswagen AG – Report


Volkswagen AG is planning to sell Ducati for cost cutting in wake of Dieselgate scandal; Hero MotoCorp is also rumored to be in the list of potential buyers alongside Royal Enfield

Is Royal Enfield thinking about acquiring the Italian famous superbike manufacturer brand Ducati? Reports suggest that the Chennai-based motorcycle manufacturer has been approached to purchase Ducati, currently owned by Volkswagen AG. If things go on the right track, then Ducati could soon be owned by the Indian company. The report surfaced just a few days after we reported about Volkswagen AG’s plan to sell the Italian brand for cost cutting in wake of Dieselgate scandal.

Volkswagen AG has been exploring options to salvage itself from the huge crisis it entered after the Dieselgate scandal came under light. Now in an attempt to reduce the cost and to streamline its operations, the German auto major is thinking about selling a couple of brands and Ducati is one of them, which was purchased by the Audi couple of years ago.

Royal Enfield himalayan launched -22-India

Also read: Volkswagen Considers Selling Ducati Due to Dieselgate

Ducati is expected to fetch a valuation of around Rs. 10,500 crore. While the latest name in the potential buyer list is the Royal Enfield, another Indian company Hero MotoCorp ad some Chinese companies are also in the list. Royal Enfield has been nurturing the dream to become major player in the global market in middle-weight motorcycle category, and acquiring Ducati would help the brand to energise that dream.

Royal Enfield’s parent group Eicher Motors is not keen to disclode any detail about this issue, but the company has made sure that it is open towards any opportunity to grow in the international market. Interestingly, in recent past RE has seen healthy growth in global markets like Europe, North America and in several Asian countries also. If it manages to purchase Ducati, that will help the Royal Enfield to increase its market share significantly.

Also read: 162 HP Ducati Diavel Diesel Launched in India at Rs. 19.92 Lakh

The Italian superbike manufacturer is currently owned by Audi on behalf of Volkswagen AG. Purchased by the German luxury carmaker brand in 2012 at around Rs. 6,000 crore, Ducati’s portfolio is ruled by 800 cc and 1,200 cc bikes. Interestingly, these segments are absent in RE’s portfolio, but it has shown keen interest in developing bigger and more powerful machines.

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Source: ET Auto