India’s bike maker Eicher in race to buy Italian Ducati
India's Eicher Motors, the makers of cult bike Royal Enfield, is set to make an offer of US$ 1.8-2 billion to acquire Italy-based superbike Ducati
As German auto-maker Volkswagen readies to sell off its superbike unit Ducati, a couple of Indian bike makers have also thrown their hats in the ring. The latest to do so is Eicher Motors, the makers of cult bike Royal Enfield.
Siddharth Lal-led Eicher Motors is set to make an offer of US$ 1.8-2 billion to acquire Ducati, which comes under VW’s Audi division, reports Economic Times. Volkswagen is reportedly selling its superbike unit, based in Bologna, Italy, to fund a strategic overhaul following emissions scandal.
Earlier in July, India’s major two-wheeler manufacturer Bajaj Auto Ltd had also expressed its interest in acquiring this performance motorcycle brand. On the other hand, Austrian bike maker KTM AG, in which Bajaj owns 48% stake, is also in the race.
However, the sale process has met with a temporary setback following resistance from German trade unions and internal rifts on strategy, reports Reuters.
Audi is at odds with the parent over strategy and a decision to sell Ducati needs to be approved by VW’s supervisory board. Moreover, labor leaders at VW, who hold half the seats on the 20-member board, have strongly opposed a sale regardless of price. VW is due to hold a board meeting on September 29, although any decision on Ducati’s sale is seen as unlikely, Reuters added.