The Indian two-wheeler market is growing at a great pace and it is leaving opportunities every where for the two-wheeler makers. The scooter segment is definitely the one having tremendous growth potential and it is time for the companies to gear up and grab that opportunity and fight for the number one position. Italian two-wheeler maker Piaggio, which made a come back to Indian market this April through its well-acclaimed brand Vespa, is also gearing up to lead the race. Recently, the company launched the stylish scooter, Vespa LX125 priced at Rs. 78,299/-(OTR Mumbai). 8,500 units of the Vespa have been sold and booked which is nothing to talk about.
Read the Piaggio Vespa LX125 Test Ride Review
After this successful launch, the Italian brand is planning to target the mass-market segment. Perhaps, by the end of the year 2013, we would be able to see another offering from the company on Indian roads. Targeted specifically towards the mass market, the company is planning to launch a scooter. The company is already working on this new product which will borrow the technology from the Piaggio stable. Just like how the engine in Vespa is customized for Indian roads, same would be done in case of this new scooter too. The company has placed Vespa for the premium segment. However, the mass-market scooter will take a different brand name. The company would take almost 18-20 months to come up with a product and thus it is expected to have the scooter by 2013 year end.
We have already briefed you about Piaggio’s plans to launch the Fly 125 scooter in India here. This is the same mass market scooter being spoken about. The company’s Indian operations arm, Piaggio Vehicles Private Limited, is also investing Rs. 150 crore at its current plant at Baramati in Maharashtra. Currently, the installed capacity of the plant is 1,50,000 units per year. The investment will double the capacity by the year end such that atleast 20,000 units can be manufactured in a month. Apart from the scaling up of production facilities, the company is also keen at expanding its sales network. At present, it has 48 dealers across 35 cities. By the year end, the number would be increased to 100 dealers across the country which would help the company to reach to 75-80 percent of the Indian market. The company would also be spending on promotion of its Vespa brand through TV commercials.
Source – Economic Times