What The Ducati Acquisition Could Mean For Royal Enfield

The big news this week in the Indian motorcycle industry is that Royal Enfield is still in the race to buy Italian motorcycle brand Ducati. According to latest reports, Royal Enfield is likely to make a bid of between $1.8-2 billion (that's over Rs. 12,000 crore) to acquire Ducati. It's still a bid though, and the actual acquisition, if it does happen, will be some time away. As such, Royal Enfield is already on a roll, and is counted among the most profitable automotive companies in the world. And acquiring an iconic brand like Ducati can only mean good news for Royal Enfield.

Also Read: Royal Enfield Still In Hunt For Ducati With $1.8 Billion Bid

So, if Royal Enfield does get around to acquiring Ducati, what does it have in store for the Indian motorcycle manufacturer? For one, Ducati is known to make motorcycles with state-of-the-art technology, and most of the current range of Ducati motorcycles uses v-twin engines (called L-twin in Ducati-speak). For the next generation range of Ducati superbikes however, the Italian firm has already launched its first road-oriented V4 engine, the Desmosedici Stradale, which will go on to power future Panigale bikes, the first of which is expected to be unveiled in November. The L-twin engines will continue to be used in other Ducati models though, and an association with Royal Enfield will open up new possibilities for technological collaboration and even sharing technical know-how.

The Ducati Panigale V4, the next Ducati superbike, will be launched in November 2017

Also Read: Ducati V4 Desmosedici Stradale Engine Unveiled

Royal Enfield's current motorcycles include modern classics and cruisers, powered by single-cylinder engines in 350 cc, 500 cc and 535 cc displacement. Royal Enfield is reportedly working on a new 750 cc parallel-twin engine which will be used in possibly two new motorcycle models - another modern classic, and a café racer iteration. If Ducati and Royal Enfield do end up under common ownership, the Indian brand would certainly have access to Ducati technology, but it would be more complex than just plonking Ducati engines on Royal Enfield branded motorcycles. In fact, if this acquisition does come through, management of both brands will in all likelihood remain separate, and both brands will continue to operate as separate entities.

Also Read: Updated Royal Enfield Classic 350 and Classic 500 Launched; Bookings To Open This Month  

The Ducati SuperSport will be the next model to be launched in India

But the synergies between the two brands will be mutually beneficial under common ownership. And also, there's the issue of Ducati's sales, and prices of its models. Currently, most Ducati bikes sold in India are being brought in from Ducati's Thailand plant. Thanks to an ASEAN free trade agreement, prices of motorcycles brought in from Thailand to India are still competitive enough, but for Ducati to get even more competitive in a high-volumes and rapidly growing market like India, utilising Royal Enfield's manufacturing infrastructure locally would perhaps open up even more market share in the world's largest motorcycle market.

Royal Enfield has introduced new colour schemes for the Classic 350 and Classic 500

Then, there's the concept of design. Most Ducati models follow contemporary and sporty design language, and are counted among one of the most exotic looking sportbikes. Royal Enfield largely follows its age-old 1950s retro design silhouette, with periodic cosmetic updates to its fleet of Bullet and Classic motorcycles. The more recently introduced cruisers and café racers don't have quite the sales volumes as the retro styled motorcycles like the Royal Enfield Classic 350, the single largest selling Royal Enfield model. Access to Ducati's design expertise, particularly on the lines of reviving '60s design with contemporary and modern touches like the Ducati Scrambler range will certainly be a shot in the arm for Royal Enfield, and open up a whole new world of possibilities.

The Ducati Scrambler is the largest selling Ducati model worldwide

More importantly though, as Royal Enfield looks to aggressively establish a global footprint, an association with the Ducati brand will give added brand equity to Royal Enfield, which has so far, had only a niche following in markets abroad. Eventually though, if Royal Enfield does manage to get ownership of Ducati, it would mean much more than just the coming together of two brands. For Royal Enfield owners and fans, who have always kept the pride of ownership over everything else, it would certainly mean the beginning of a new era for Royal Enfield, a company which has been able to dramatically turn around its fortunes from the brink of obscurity in the 1980s and 1990s, to one of the most valued brands today.