Royal Enfield Closes in on Ducati Sale with Bid of $1.8 Billion
Latest Update | September 7, 2017: A recent report from Economic Times hints that Royal Enfield is about to place a bid of $1.8-2 billion for Volkswagen Group’s Ducati brand. This report comes after other statements that claimed VW would retain Ducati as shareholders are not willing to lose such profit making brand from their side. It is said that the deadline for placing bids over Ducati ends this month. Still, anything official on the deal will take few more weeks to get public. Update Source
Original Article | May 8, 2017: A recent report in the automotive industry hints that Royal Enfield may buy Ducati from Volkswagen. The same report claims that VW approached Royal Enfield for the deal and may use the same funds for research on EVs and environment friendly cars. Royal Enfield is one of the most profitable brands in India currently and their decision hint regarding the same has not yet been received. Volkswagen has hired Evercore to evaluate the market value of Ducati. Last week there were rumors that Hero MotoCorp might buy Ducati.
Eicher Motors, the parent brand of Royal Enfield, has got a great plan for the expansion of the motorcycle brand around the world. They have been expanding in various countries and received good response from America, Australia and Europe. Eicher Motors is valuating an asking price for the brand while the deal can be sealed through further talks. The high profits of Royal Enfield makes them the best eligible candidate for this high spec deal.
Sales of Royal Enfield have crossed 60,000 units in one month for the first time. This change in the brand image was brought successfully through the Classic 350 as it comes with updated features like electric starter and disc brake. Bullet 350 was once their star product but soon lost its glory because of lack of basic motorcycling features.
The launch of other niche products like Continental GT and Himalayan further helped them fetch some numbers. Ducati recently reported to bring 5 new models in India. This also includes the entry level Monster 797, carrying a price tag of INR 7.82 lakh (ex-showroom Delhi).
“I have a general view on such things. We are always open to thoughts and ideas. But as you know, we are the most focused and selective company… So basically, without saying absolutely no to anything – because we never say never – we are zeroed in on our own opportunity that we do not want anything to distract us,” Siddhartha Lal, MD & CEO, Eicher Motors is quoted by the Times of India.”