Piaggio Vehicles Private Limited (PVPL), the 100% subsidiary of Piaggio Group, expects its two-wheeler business to turn profitable this year. “We will be back to profitability,” Stefano Pelle, MD and CEO, Piaggio Vehicles said.
To get this kind of results in four year is good, Pelle said. The three-wheeler business is already a profit making business for Piaggio. The company is in the Indian two-wheeler market since April 2002 with the Vespa brand.
The company has a capacity to produce 1,50,000 units per annum at Baramti, near Pune.
Piaggio in India has focused on the premium scooter segment with Vespa. It has now added the Aprilia brand to its portfolio. Piaggio rolled out its first Aprilia brand scooter from its Baramati plant in August. Regarding sales volumes, Pelle said Vespa would never be a mass market brand and the company was content playing in the niche space of premium scooters. “The market we are targeting is small so no target is expected,” Pelle said.
So we are introducing the Aprilia and it is the first step in the direction of growing volumes, he said.
Piaggio has a flexible assembly line at the Baramati plant that will roll out both the Vespa and Aprilia brands. The Aprilia SR 150, is a crossover vehicle and is aggressively priced at R65,000 but this will be an introductory offer for a limited period.
The company has invested Euro six million for bringing Aprilia to India, which is expected to contribute a good part to the volumes. The scooter has about 90% localisation, which will go up to 98% in two months, Pelle said.
“The SR150 is completely different from a scooter or a scooty and we are creating a new segment,” Pelle said. The scooter is targeted at the youth. It will have a single cylinder 150cc, 4-stroke engine which is a BSIV engine.
Piaggio is also bringing in a the V9 motorcycle to India which is likely to be launched next week. This bike will be cheaper than the other big bikes and would be in the R13 lakh to R14 lakh range.
The company is also considering bringing a motorcycle in the 200cc to 400cc as they see opportunity in this space. A study has been presented to the board in this regard.