After getting good response for Vespa LX 125 from Indian buyers the Italian two-wheeler manufacturer Piaggio is aiming to introduce a new range of scooters by the end of 2013. Piaggio India Private Ltd has locally manufactured its scooter at Baramati in Maharashtra and the brand has already invested a sum of Rs. 150 crore to increase the production capacity. According to Ravi Chopra, Chairman and Managing Director Piaggio India, the scooter segment is rapidly growing in India and they want to capitalize on it. They already started working on a new product at Piaggio's stable and it will take around 1.5 to 2 years to bring in new range of scooters in India. He also mentioned that in coming five years, the scooter segment in India will grow at a CAGR (compound annual growth rate) of 18-20 percent.
According to SIAM reports, the scooter sales in India grew at an impressive rate of 24.55 per cent to 25,62,841 units in past fiscal. Piaggio India has launched Vespa LX 125 at a price of Rs. 66,661 (ex-showroom Maharashtra). The company also plans to localize the engine production to reduce the cost of production. Till date, the auto giant managed to sale around 8,500 units and aims to increase this number to 40,000-45,000 by the end of this calendar year. Curently, the Baramati Plant is producing around 10,000 to 12,000 units a month and it is expected to ramp up by end of the year.
The local production facility in Maharashtra has a capacity of installing 1,50,000 units a year. In order to double its production capacity by 2014, the company has invested Rs. 150 crore. Additionally, the Italian brand is all set to increase its dealership network to 100 from existing 48 dealerships in 35 cities. As market strategy, the firm would foray an intense TV campaign by August end ahead of Diwali occasion to lure market towards Vespa brand.
Source: - Piaggio to Foray New Range of Scooters in India by the end of 2013