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mv agusta enters indian market

Downsizing MV Agusta is reported to have entered the Indian market through an exclusive partnership with Pune-based Kinetic Group. The bikes will be sold through the group’s planned Motoroyale chain of outlets, the first of which has opened in Pune. The company will operate as MV Agusta India Pvt. Ltd.

“This is the perfect time for us to enter India, as we are witnessing a surge in demand for premium motorcycles,” said Judah Immanuel Sangaran, Far East country manager, MV Agusta Motor S.p.A.

Following Pune, Motoroyale dealerships will soon be opened in Ahmedabad, Bangalore, Chennai, Delhi and Mumbai. Motoroyale showrooms will focus on sales, service, spares and after sales support for MV Agusta customers in India.

MV Agusta India has the exclusive distribution rights for the entire range in India, Bangladesh and Sri Lanka.

The news of MV’s move into India follows our report, on 6 May, that MV Agusta supremo Giovanni Castiglioni intended to cut R&D spend from an annual £12m to £5.5m, slash motorcycle production by one-third to 6000 units a year with a smaller range and reduce the racing budget from just over £3m to a mere £470,000. At the same time, a plan for “generating cash” will be put in place.

Castiglioni plans to revive the insolvent company and regain full independence.

Apart from restructuring MV’s monumental £39m debt mountain by bringing in new investors and cutting operational costs, Castiglioni claims to be in negotiations to buy back AMG-Mercedes parent Daimler’s 25% shareholding in his business.

How Castiglioni hopes to achieve any of this is still entirely obscure. MV Agusta’s Varese factory is currently idle with most of its 200-strong workforce laid-off. And its reputation for consuming capital without meaningful return — having successively burned the fingers of both Malaysian automotive giant Proton and Harley-Davidson, plus serried ranks of Italian investment bankers, over the past decade — is hardly much of an advertisement.

Nevertheless, he believes that MV Agusta can once again become “the Ferrari of motorcycles”.

 

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