Royal Enfield Could Buy Ducati From Volkswagen — Report

Yes, TOI has reported that Royal Enfield has been approached to purchase the Italian motorcycle manufacturer, Ducati. Currently, Ducati is owned by German auto major Volkswagen Group.

As per reports, Volkswagen is badly affected by the diesel emission scandal, and it is looking at options to sell the Italian company. It is estimated that Ducati could fetch approximately Rs 10,500 crore.

On the other hand, Royal Enfield is owned by Eicher Motors in India. The manufacturer of retro looking thumpers has witnessed a strong growth in the Indian market. The company is even expanding its reach to various overseas markets.

The report states that Royal Enfield is examining the terms of acquisition, price and how Ducati will fit in its rapidly growing operations in India. But Eicher declines to comment on the development.

Speaking to TOI, MD and CEO, Eicher Motors, Siddhartha Lal said, "We can't talk to you on such things. 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."

Eicher has already tie-ups with Swedish commercial vehicle maker Volvo and utility vehicle maker Polaris Sources stated that the firm is keen to explore the possibilities of acquiring Ducati.

Currently, Ducati is owned by Volkswagen Group's premium car division, Audi. The German company bought Ducati in 2012 for Rs 6,000 crore. Ducati is renowned for its motorcycles in the range of 800cc to 1,200cc.

Royal Enfield will be hugely benefitted by Ducati's technological advance, iconic branding and its reach in developed markets. Eicher Motors is on the right track in India as far as profit is concerned. So, we can expect Royal Enfield to venture new possibilities.