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Piaggio to expand scooter capacities for volume segment.
PUNE: After announcing the launch of the Vespa in India last year, Piaggio plans to double its scooter manufacturing capacities to address the volume segment. This is in addition to bringing in its premium motorcycles to India, which it had displayed in Mumbai earlier in the year.
"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," Ravi Chopra, chairman and managing director, Piaggio Vehicles India Pvt Ltd, said. He added, "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."
The Indian subsidiary, which has long declared its intention of becoming a global design and manufacturing hub, is also beefing up the rest of its product portfolio. Its small commercial vehicle, or SCV, which carries a payload of 500 kg will soon come as a passenger carrier.
"We are developing a passenger variant for the Ape Mini Truk, currently operating as a small commercial vehicle which will come into the market by the end of this year. This is targeted at the low cost transportation segment and is not expected to eat into our three-wheeler passenger carrier market," he said.
Piaggio's SCV is expected to be in the same segment as Tata Motors' Iris and the M&M Gio passenger which has been launched recently. This vehicle will be able to seat six people plus a driver and will be targeted at the point-to-point transportation segment.
Referring to the company's plans for the scooter segment, Mr Chopra said the Vespa production plant will start manufacturing operations from December, the product will be unveiled at the Auto Expo in Delhi, in January 2012 and commercial sales will begin by March-April.
"We are ahead of schedule and we could even start selling Vespas by February-March," he said. So far, the auto company has invested Euro 30 million in the scooter plant which will have a capacity to make 1.5 lakh units. "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," Mr Chopra explained.
Source: Piaggio to expand scooter capacities for volume segment - The Economic Times
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Even Honda doesn't really catch everyone as a customer, because they don't have a product in each segment of the market. Having more and more products in different segments is a good thing to happen..
In fact, Bajaj will soon have 3 products in the 150cc segment itself, and so on. So, their range of scooters, commercial vehicles and motorcycles should be as big as possible to set a strong foot in the Indian market.
I wonder what they said about upper end bikes being evaluated...(?) Do they mean mass production of the bikes here alongwith the other product range?
"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," Ravi Chopra, chairman and managing director, Piaggio Vehicles India Pvt Ltd, said. He added, "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."
The Indian subsidiary, which has long declared its intention of becoming a global design and manufacturing hub, is also beefing up the rest of its product portfolio. Its small commercial vehicle, or SCV, which carries a payload of 500 kg will soon come as a passenger carrier.
"We are developing a passenger variant for the Ape Mini Truk, currently operating as a small commercial vehicle which will come into the market by the end of this year. This is targeted at the low cost transportation segment and is not expected to eat into our three-wheeler passenger carrier market," he said.
Piaggio's SCV is expected to be in the same segment as Tata Motors' Iris and the M&M Gio passenger which has been launched recently. This vehicle will be able to seat six people plus a driver and will be targeted at the point-to-point transportation segment.
Referring to the company's plans for the scooter segment, Mr Chopra said the Vespa production plant will start manufacturing operations from December, the product will be unveiled at the Auto Expo in Delhi, in January 2012 and commercial sales will begin by March-April.
"We are ahead of schedule and we could even start selling Vespas by February-March," he said. So far, the auto company has invested Euro 30 million in the scooter plant which will have a capacity to make 1.5 lakh units. "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," Mr Chopra explained.
Source: Piaggio to expand scooter capacities for volume segment - The Economic Times
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Even Honda doesn't really catch everyone as a customer, because they don't have a product in each segment of the market. Having more and more products in different segments is a good thing to happen..
In fact, Bajaj will soon have 3 products in the 150cc segment itself, and so on. So, their range of scooters, commercial vehicles and motorcycles should be as big as possible to set a strong foot in the Indian market.
I wonder what they said about upper end bikes being evaluated...(?) Do they mean mass production of the bikes here alongwith the other product range?
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