Royal Enfield to acquire Ducati

By NT Bureau Published on May 08, 2017 04:03 PM IST

Chennai: Ducati's parent company, Volkswagen is currently looking for ways to dust off losses related to emissions scandal.

Reports suggest that selling of Ducati is said to be the option that Volkswagen is keen on. Royal Enfield is understood to have been approached to acquire Italian superbike maker. The most iconic brand among high performance motorcycles could soon be owned by an Indian company.

VW, reeling under a crippling diesel emissions scandal, has tasked investment banking boutique Evercore to evaluate possible options for a sale of Ducati.

The Italian company could fetch a valuation of about $1.5 billion euros (approximately 10,500 crore), according to estimates.

Royal Enfield, a part of Eicher Motors, has been witnessing healthy growth in India even as it expands aggressively in overseas markets across Europe, North America, and Asia. Ducati current portfolio is dominated mainly by motorcycles powered by engines between 800cc and 1,200cc, a segment which is completely missing in Royal Enfield.

Ducati had sales of 593 million Euros in 2016 (Rs 4,196 crore).

Other suitors may include global companies such as Suzuki, Honda, Polaris and Harley Davidson, as per

reports. Royal Enfield will hope to gain from Ducati's iconic branding, technology prowess, heavy-bikes

portfolio, and a good network in developed markets.

RE motorcycle sales grew 31 per cent last fiscal and touched all time best sales numbers of 6.66 lakh units against 5 lakh units in 2015-16.