Ducati revs up for big expansion

[mactbkk]

• 11 Oct 2013
• Bangkok Post
• PIYACHART MAIKAEW

[h=1]Ducati revs up for big expansion[/h]
Ducati Motor (Thailand), an Italian bigbike maker, invested 580 million baht to triple its Thai output to serve increasing demand across the globe.
The assembly plant in Amata City Industrial Estate in Rayong is its sole production base outside its home in Bologna, Italy.
Managing director Francesco Milicia said the parent company, Ducati Motor Holding SpA, spent 220 million baht to set up the Thai unit in November 2010 and has been churning out 5,000 motorcycles a year since 2011.
The 7,000-square-metre plant will be extended by 25,000 sq m so that it can produce 15,000 motorcycles.
Mr Milicia said models assembled here have engines sized from 800-1,000cc.
‘‘The Thai unit is aimed at serving demand for these models in the local market and for exports,’’ he said.
About 60% of motorcycles are exported, with the focus on Asian emerging markets where Thailand has trade privileges.

Mr Milicia said Thailand is a good place for Ducati’s second production base due to its cost-effectiveness in terms of wages and taxes. It aims to produce motorcycle parts here to supply its Italian outlets due to the cost advantages.
The company has appointed a Thai company, Ducatisti Co, as its sole authorised distributor, led by managing director Apichat Leenutaphong.
Mr Apichat said it has targeted sales growth in Thailand of 60-70% from 1,550 motorcycles sold last year.
The company has marketed six Ducati models priced from 409,990 to 2.2 million baht.
‘‘In emerging markets including Thailand, the big-bike sector has grown by an average of 30% annually, while the European and developed markets are sluggish in line with their economic crisis,’’ said Mr Apichat.
The Thai dealer last year spent 100 million baht to launch its flagship showroom and service centre on Vibhavadi Rangsit Road in Bangkok.
It plans to have 11 outlets and service centres — five in Greater Bangkok and six upcountry. Branches in Khon Kaen and Hua Hin will open next year.

 

[Thump]

Why only big bikes? Honda sells their 250s and 500s like hotcakes, Triumph just came out with a 250 single, KTM has the Duke 200 and so on.

Why not build a beautiful 250cc retro bike, nothing fancy, for a decent price to get more beginners on board?

It's not that Ducati doesn't have a history of producing good-looking bikes.

 

[brake034]

Thump, the smaller bikes are popular in countries like India, that is why KTM makes them there, look at HD entering the Indian market with a 500 cc.
India is a very inmature market for motorcycles, huge opportunities there.

Ducati does not aim for that market but aims for the high end, it is a matter of company strategy, same as you never see Ferrari making a 4 door saloon.

Lovely Monza 250!

 

[Thump]

Huge opportunities, right, that's why Ducati should join the fray!

If HD builds the Street 500 (not only for the Asian market!) then Ducati should consider building an entry model.

Triumph which are also aiming for the high-end is smart enough to build a 250.

Aiming only at the high end is not a good strategy, especially these days. BMW has realized that a long time ago and started to build 800cc and 650cc bikes.

Since Ducati has built some real beautiful 250s they wouldn't look as silly as HD with their Street models.

And why would Ferrari never make a 4 door saloon?

 

[brake034]

Hi Thump, thanks for the heads up on the "4 door saloon" Ferrari, I am sure it's not a car they made in large numbers.....

Every company has it's own principals on markets, look at the Swiss watch companies and their prices.
Don't forget, Ducati is owned by Volkswagen, I am pretty sure they know the low end versus the high end market principals.
Low end means high volumes, low profits, more headache.

BMW signed a JV in India but I am pretty sure they will not confuse their current customers with these Indian made lower end products.
I am pretty sure HD will do the same, if not they will need to revise their market position in their current market.