Previous reports suggested that Hero MotoCorp could be one of the contenders to buy Volkswagen Group owned brand Ducati. The VW Group is now said to have approached Royal Enfield to purchase the Italian based motorcycle company.
Last year too, rumours suggested that the Volkswagen Group, which has been suffering big time due to the diesel emissions scandal, had put the Ducati brand up for sale. The company is now said to have given the task of evaluating the possible options for the sale of Ducati to investment banking firm Evercore. The Italian brand is likely to receive a valuation estimated at $1.5 billion (about INR 10,500 crore).
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Siddharth Lal, MD and CEO of Eicher Motors owned Royal Enfield, while speaking to TOI, 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. So basically, without saying absolutely no to anything, because we never say never; we are so zeroed in on our own opportunity that we do not want anything to distract us.”
Ducati was acquired by Volkswagen Group’s premium car division Audi back in 2012. The company had bought the Italian brand for 860 million Euros (approximately INR 6,000 crore). The news of selling the Ducati brand comes even as the Indian arm of the company plans to launch five new models in India in the coming months.
Source: Times Of India