One of the most loved Indian two-wheeler brands, Royal Enfield is in talks with the German auto conglomerate, Volkswagen to own its Italian two-wheeler brand Ducati. If the reports are to be believed, Enfield was approached by the Volkswagen to acquire Ducati.
The idea of selling-off the Italian motorcycle manufacture was explored after the Volkswagen started to consider options for the funding of its multi-billion Euro shift to develop electric vehicles with same performance. The idea came in after Volkswagen faced a huge set-back in the ‘diesel gate scandal’. As per sources, an investment bank — Evercore — has already been hired by the Volkswagen in order to evaluate the current market position of Ducati.
Royal Enfield leads the global race of the most profitable automobile brands in the world defeating many famous names in the list. Royal Enfield has left no stone unturned and is expanding aggressively in the market overseas. It has initiated direct sales, distribution of subsidiaries in North and Latin America.
As reported by a leading daily, TOI, Royal Enfields’ parent organisation, Eicher Motors is examining the important terms related to the Ducati acquisition.
In the previous year, the Italian motorcycle manufacturer, Ducati posted sales of over Rs 4,000 cr. It’s annual earnings for Volkswagen was estimated at Rs 700 cr. As per the current market value, the brand is estimated at over Rs 10,000 cr.
Meanwhile, Royal Enfield made the highest-ever monthly sale by selling over 60,000 bikes in just a month. In the 2016-2017 year, it made a growth of over 30% by selling over 6.6 lakh motorcycles last year.
Royal Enfield, which has the market capitalisation of about Rs 52K cr, claims a market share of over 95% in its segment.