Monday, June 07, 2010
Piaggio has decided to re-enter the Indian market with Vespa scooters, starting with the Vespa LX125. India is the world’s second-largest market for powered two-wheelers, with 8.4 million units (including motorcycles and scooters) having been sold in 2009. Of this, the sale of scooters accounted for about 1.3 million units.
The Indian market is currently dominated by 110cc Honda scooters, while Suzuki, TVS Motor, Hero Honda and Mahindra are also bit players in the market. With its scooters, Vespa hopes to take on Honda and other companies in India. The company will build a new factory in the country where it will produce up to 150,000 units per year, and hope to launch its scooters in India by end-2012.
Piaggio plans to invest a total of about 30 million euro in India in financial years 2010 and 2011, with the goal of achieving revenues of approximately 70 million euro in 2015.
Piaggio is already one of the leading manufacturers of commercial three-wheelers in India, selling more than 180,000 units in 2009. At its Baramati plant in India, Piaggio is also completing work on its new 1.0- and 1.2-litre diesel and turbodiesel engines intended for a range of new Piaggio commercial vehicles to be marketed in Europe and Asia.