Would it be third time lucky?
MUMBAI: Italy’s Piaggio & C SpA, owners of the Vespa brand, is planning to enter the Indian two-wheeler market again.
The company, through its fully owned India subsidiary — Piaggio Vehicles Pvt Ltd — plans to launch gearless scooters by 2010. Not taking any chances, this time the company plans to enter on its own. “We are exploring opportunities of launching two-wheelers here, leveraging on our R&D and technological strength. In two years, we should be able to launch the vehicle,” Roberto Colaninno, group chairman and CEO, Piaggio & C SpA, said.
The company plans to roll out 150,000 units of a range of gearless scooters from its Baramati facility, near Pune, which makes three and four wheelers.
In 1960, the company had a first tryst with India, introducing Vespa scooters in collaboration with Bajaj Auto. The collaboration expired in 1971. Twelve years later, it again entered the Indian market, this time in a 26:74 joint venture with LML, only to exit in 1999 after a bitter battle with the Indian promoters.
“We are not talking to anyone for any alliance or joint ventures. We will launch these vehicles on our own,” Ravi Chopra, chairman and managing director, Piaggio Vehicles, said.
Other two wheeler brands Piaggio owns are Gilera, Aprilia, Moto Guzzi, and Derbi. However, at this point, only Vespa is scheduled to be bought here.
“With our product and capacity expansion plans, we currently have our hands full. So in the next three years, we have no plans to introduce motorcycle,” Colaninno said in response to a query on Piaggio’s’ plans of introducing Aprilia range of high performance motorcycles in India. Piaggio Vehicles, which contributed 238 million euro to its parent’s topline in 2007, is expanding its manufacturing capacity to 200,000 three wheelers and 36,000 four wheelers by 2010. Its current capacity is 180,000 three wheelers and 24,000 four wheelers. It is also setting up a 200,000 units per annum engine making capacity for captive use.
Colaninno said Piaggio’s expansion in South East Asia, Africa, and Latin America would be spearheaded by its Indian arm. It is exploring setting up three-wheeler assembly units in these markets; components will be sourced from India.
In the three wheeler space, where Piaggio Vehicles currently trails behind market leader Bajaj Auto with a 39% market share, the company aims to be the largest player in 3-4 years.
g_rabin@dnaindia.net
