The rumor mill is churning within the motorcycle acquisitions world. Some major business-based publications are reporting that Royal Enfield is in sales talks with Ducati Motor Holding.Royal Enfield, which is owned by Indian automaker Eicher Motors based in New Delhi, allegedly approached Ducati in hopes of buying the Italian motorcycle manufacturer. Reports say Ducati has entrusted the banking agency Evercore for options of the sale, which is around €1.5 billion.
Ducati, which was bought out by Volkswagen in 2012, had a record-breaking year in 2016, selling over 55,000 motorcycles to customers worldwide. Growth was positive across all markets, including in America, which is Ducati’s largest market where nearly 8,800 bikes were sold.
Ducati, which is present in 90 countries and employees around 1,600 employees, is looking to build upon those numbers in 2017 with the release of seven new models: the revised Monster 1200, Monster 797, Multistrada 950, SuperSport, 1299 Superleggera, Cafe Racer and Desert Sled.If the buyout occurs, Royal Enfield can strengthen its sales by using Ducati’s business-building model. Royal Enfield, which was established in 1893, making it one of the oldest motorcycle companies, currently has joint venture relationships with Swedish car manufacturer Volvo and Indian Motorcycle parent company Polaris.The news arrives after Volkswagen’s diesel emissions scandal, which costs the Germany-based company in the neighborhood of $18 billion.Emails were sent to Eicher Motors CEO Siddhartha Lal, but we have yet to receive a reply.