Piaggio, the popular 3 wheeler commercial vehicles maker will bring back the Vespa scooters to the Indian soil.
Piaggio's Chairman & C. S.p.A, the Italian scooter manufacturer had joined hands for a business deal to set up a new factory in the country and there will be a launch of Vespa LX 125 model in 2012.
Piaggio's new facility will have a capacity of 1,50,000 units per annum. With an estimated investment of Euro 30 million in the 2010-2011 fiscal year, the company will increase the revenue later in 2015 by euro 70 million.
Vespa had been in India since 1950, when it had the JV with Firodias. Also, the company had tie up with LML, which broke up in 1999.
Piaggio Vehicles Private Limited is manufacturing vehicles from the Baramati Plant. Piaggio plans to produce 1 L and 1.2 L diesel engines for its commercial vehicles. These will be exported to other Asian markets and also to Europe.
The main reason for companies like Piaggio eyeing on Indian auto market is that India is having a robust sales growth in vehicle sales like never before.
During the 2004-2009 period, the Indian two wheeler market grew at the rate of 7% per annum, including the global recession period.
Also, among the total sales of two wheelers in India, 15% is scooter segment and surprisingly the scooter sales had made a promising 13% growth. So, its very wise for Piaggio to launch Vespa LX 125 cc in India sooner!