KTM-Bajaj Might Buy Ducati, Official Announcement in 2 Weeks
A recent report from Economic Times claims that KTM-Bajaj Auto’s partnership may soon touch new heights through a deal with Volkswagen. Yes, you guessed it right. KTM is very close on buying the Italian superbike manufacturer Ducati and indirectly, Bajaj Auto will experience the win-win situation with two exotic brands on its side.
The new partnership may open new doors for both the brands, most probably benefiting the Italian brand when it comes to presence in the Asian market. Even though they are not 100 percent sure about the alliance, it seems they have placed a lucrative bid this time.
Bajaj Auto is the major investor as they currently have INR 13,250 Crore of free cash on their side. Rajiv Bajaj even claimed that they have kept this amount in order to discover new possibilities for the brand’s growth.
Some queries also pointed at buying more stake in KTM but Bajaj Auto cleared that they are not in any way ready to take the remaining 52 percent from Stefan Pierer. They believe that he’s doing great for the brand and should not sell any part of his side. Bringing Ducati on their side will help the brand expand through Bajaj’s support. They can localize most products and thus, sales would definitely rise.
Ducati sold 55,451 units in 2016 and brought a turnover of 731 million Euros. Such a successful brand never goes on-sale but Volkswagen diesel emission scandal has forced them to rethink their future strategies. Audi currently owns Ducati and thus, would sacrifice the same for paying huge fines and fueling the future plans.
Ducati could enter an all new segment of bikes through this partnership, retailing premium machines for the developed markets and bringing smaller displacement models for developing countries. Huge potential in smaller capacity bikes may bring some twist in the operations of such premium brands.
Source: ET Auto
