Piaggio Vehicles, an Italian automaker from the group that makes Vespa and Piaggio scooters, plans to revamp its transporter and freighter portfolio with an unprecedented 21 new models complying with strict emission standards that India would adopt next year.
For Piaggio, India accounts for a fourth of its global turnover. The new portfolio of electric, hybrid, CNG and LPG vehicles will not only help the company fight aggressively in the domestic market but also open new opportunities beyond India.
The company is the leader in India’s three-wheeler cargo space. With the new range of vehicles, it is planning to reinforce its presence in the people-moving three wheelers as well.
Diego Graffi, MD, Piaggio Vehicles, told ET that after the introduction of new models, Piaggio will have the most complete range of products in the small commercial vehicle segment. “We want to grow in the alternative fuel segment. We have recently introduced new powertrains and now we have a complete range of powertrains — diesel, CNG, LPG,” Graffi said.
The company will be bringing in its electric three-wheeler with a swappable battery solution in the second half of 2019 to take advantage of the federal push towards electric-powered public transport.
Piaggio plans to invest about ₹200 crore over the next few years, of which a significant portion would go towards the introduction of a new range of BS VI three-wheelers.
Along with the expansion of portfolio, Piaggio is penetrating deeper into rural India.
Malind Kapur, senior VP, marketing and channel development, Piaggio Vehicles, said the company has the largest network in the SCV industry with 432 dealerships and more than 1,050 touch points. This network will be further increased to 500 dealerships and 1,200 touch points this year.
In the 10 months of this financial year, Piaggio India has grown its three-wheeler sales by 13% to 1.4 lakh units, with a market share of 25%. Exports during the period jumped 60% to 31,000 units. Twowheeler sales jumped 19% in the April to January period of FY19 to 66,000, with exports contributing an additional 17,152 units.
At the end of 2017, the Indian operation contributed 26.5% of Piaggio’s global turnover at €355.9 million and 41% of the company’s global sales 2.3 lakh units.
While the earnings of 2018 entire calendar year are yet to be reported, at the end of September 2018, the sales contribution from India went up to 44% at 2.1 lakh units, whereas the revenue contribution from India jumped to 28%.
Piaggio’s nine-month revenue jumped 43.3% to €1.1 billion, largely driven by the Indian operation that expanded 46% to €306.3 million. The expansion helped compensate for declines in sales clusters such as Europe, Middle East, Africa, America and the Asia Pacific.
Piaggio will bring in its electric three-wheeler with a swappable battery solution in the second half of 2019 as the govt pushes for electric-powered public transport