Hero MotoCorp

India’s Hero MotoCorp was a late addition to the Ducati rumor mill. The former Honda partner was not one of the companies initially rumored to be interested in acquiring Ducati.

Bloomberg reports Hero, the world’s largest motorcycle manufacturer in terms of sales volume, has been speaking with bankers about potentially acquiring Ducati.

Since the dissolution of its joint venture with Honda, Hero has been looking for a replacement to provide some research and development prowess to supplement its already well-established infrastructure.

Hero may have found such a partner in Erik Buell, reaching an agreement with Erik Buell Racing to develop new models. Ducati could be another feather in Hero’s cap, helping further expand the company’s reach outside India. Hero’s ownership of Ducati could also alleviate the huge import tariffs for the Italian brand in India.

Hero is already preparing for expansion outside of India in the next few years, a move it was restricted from making when it was working with Honda.

Pros:
Hero has the funds to acquire Ducati
Hero is ready to expand its reach outside India
May lead to introduction of smaller-displacement Ducati models for India and other markets

Cons:
Ducati’s high-end exotic sportbikes may seem an odd mix to Hero’s low-cost, small-displacement models

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