1
NEWS
Indian giant eyes Ducati
India's largest motorcycle manufacturer, Hero MotoCorp Ltd, is said to be exploring the potential purchase of DucatiAccording to a recent report that surfaced on the website of financial news outlet Bloomberg, a major Indian motorcycle maker is in talks with bankers about the potential purchase of Ducati Motor Holding SpA.
Hero MotoCorp Ltd, India's largest motorcycle manufacturer, also said to be capable of producing up to 3,000,000 bikes per year, is reportedly considering the purchase of Ducati, as it seeks to build on its technical prowess and expand its foreign interests. Initially a joint venture between Hero Cycles and Honda, the Japanese manufacturer sold its stake in the company in 2010 to leave the renamed firm Hero MotoCorp, while the licensing agreement between the two firms is set to end in 2014.
In a recent interview, Pawan Kant Munjal, the Managing Director of Hero MotoCorp, confirmed the Ducati link and the group's plans for expansion. “Lots of people have been coming to us with Ducati: not one banker, but many bankers,” he said. “We’re talking to a lot of people - not just Ducati, but whoever comes to us,” he added.
According to Munjal, Hero has cash reserves of around US$1b.
The Indian motorcycle market is charging ahead: the country's motorcycle sales grew by some 15 per cent last year, with just under 10,000,000 bikes sold. Now the nation's heavyweight motorcycle manufacturers, like Hero MotoCorp and rival Bajaj Auto Ltd, are poised to spread their wings and enter foreign markets.
According to Munjal, Hero's future lies is expanding far beyond its existing mainstay of budget models, such as the 223cc, single-cylinder Karizma (pictured). “We’ve been seen as a utility-bike maker and somebody who’s at the lower level of the market; somebody who’s more small-town and rural-market focused,” he said. “But our ambition is to become one of the biggest global two-wheeler players, and to do that you cannot only be in one small segment.”
Munjal said Hero had plans to raise its exports to over 1,000,000 bikes within the next five to six years.
Read the latest Bikesales Network news and reviews on your mobile, iPhone or PDA at <a href="http://bikesales.mobi/" target="_blank">the Bikesales Network's mobile <p>
<p>site</p></a>. Or download the all-new App.
Tags
Share this article
Written byBikesales Staff
See all articlesStay up to dateBecome a bikesales member and get the latest news, reviews and advice straight to your inbox.
Subscribe todayDisclaimer
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
Contact
Advertise with us
Local marketplaces
International marketplaces
Consent
Download the bikesales app
