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Piaggio To Up Scooter Production Post Vespa Launch
Speaking about the production schedule of the Vespa, Ravi Chopra, chairman and managing director, Piaggio Vehicles India Pvt Ltd said: “ We are ahead of schedule and we could even start selling Vespas by February-March.
Piaggio has invested 30 million Euros in its scooter plant that has a production capacity of 1.5 lakh units per year. Mr Chopra added: “ By the first half of 2013, we expect to be able to double that capacity, to 3 lakh units, when we will bring in a range of scooters. The Vespa is not a scooter, it is an aspirational, lifestyle product. Our range of scooters will aimed at the growth expected in the scooter market: last year, that segment grew at 40%, selling 2.5 million units. For the next five years, it is expected to have a compound annual growth rate of 20% hence our need for a range of scooters."
Piaggio is expecting a great opportunity in India's scooter market and Mr Chopra elaborated: “We see a tremendous opportunity for a range of scooters since this a market which is growing. So, we will double our scooter production capacities from 1.5 lakh annually, which is for the Vespa, to 3 lakh per annum by the first half of 2013 to produce this range of scooters. We also see growth in upper end of the motorcycle market, in the executive and premium segments rather than in the entry or economy segment. Therefore, we are evaluating the feasibility of bringing in our upper end bikes, keeping in mind growth in this segment."
Piaggio will also launch a passenger version of its Ape mini truck. The new model is aimed at the lox cost transportation sector. The Piaggio small commercial vehicle will compete with other SCVs such as the Tata Iris and the Mahindra Gio.
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