Ducati goes it alone in Brazil

The Italian manufacturer commits its future to the Brazilian market by opening fully-fledged subsidary

DUCATI has founded a subsidiary in Brazil, establishing 'Ducati do Brasil Indústria e Comércio de Motocicletas Ltda', which will both assemble and retails bikes in a bold commitment to the future of the emerging market.

The Brazilian subsidiary, based in São Paulo, will fully manage the production and distribution of Ducati motorcycles and other Ducati-branded products throughout Brazil. They currently sell in Brazil through the importer Izzo Group.

Ducati's decision to expand in Brazil is a culmination of their positive growth worldwide over the past few years. The last year has been incredibly lucrative for Ducati - they announced record-breaking sales (+12%) and revenues (+20% YTD) in May 2012.

Speaking said during a press conference announcing the creation of Ducati do Brasil, Gabriele Del Torchio, CEO of Ducati Motor Holding S.p.A., said: 'The Brazilian motorcycle market is one of the most interesting and the third biggest in the world,'

'The opening of this new subsidiary and the fact that our motorcycles will be assembled in the Manaus plant is evidence of our focus on the Brazilian market. We wish to offer our customers here the best possible sale and after-sales service, and confirm the strategic importance assigned to this market by Ducati.'

After recently announcing the production of the Monster 795 specifically for the Indian market, as well as the sale of high-end Panigales on the subcontinent, this decision appears to be another step in the direction of the emerging markets.

Currently, Ducati is a brand largely associated with the luxury goods market in developing countries - but the step towards mass production in Brazil could signal a significant change in approach for the Italian giant.