It has been recently revealed that Indian bike maker Royal Enfield is all set to take over Italian bike maker Ducati, as per a report published in the Time of India. The former has been approached for a possible possession. According to a report in Reuters, it was earlier said that Volkswagen is considering a possible sale of Ducati, the company seeks a critical repair, as the group is trying to integrate it’s operations.
The news has come to light after the diesel emission scandal took place, thus creating a big trouble for the Volkswagen group. It is said that VW has is looking towards the investment banking boutique Evercore, to evaluate possible options including a sale of the Ducati brand, which its Audi division acquired for about 860 million euros ($935 million) in 2012.
Royal Enfield, a part of Eicher Motors, has grown by leaps and bounds in the country together with it’s expansion in the overseas market peculiarly in Europe, North America, and Asia. Sources also revealed that Eicher Motors – which is looking to secure global control for Royal Enfield in the middle-engine category – is seeking terms related to the acquisition and how Ducati could evolve within its own fast-paced activities.
Owned by Volkswagen’s premium car division, Audi, Ducati was acquired by the German auto major in 2012 for 860 million Euros (about Rs 6,000 crore). Having sold 55,451 units last year (at a growth of 1.2%), Ducati enjoys a heavy network in primarily developed countries.
While, Eicher Motors is going through one of the best periods in its history – Credit goes to the Royal Enfield brand. Its motorcycle sales grew 31% last fiscal and touched all-time-best sales numbers of 6.66 lakh units against 5 lakh units in 2015-16.