Piaggio Vehicles (PVPL) will get a higher share of revenues from its BS-VI range of three-wheelers from January 2020 onwards as the company has successfully transitioned from BS-IV to BS-VI and will soon have zero BS-IV vehicle inventory. Piaggio has been the first three-wheeler manufacturer in India to upgrade its entire range to BS-VI and do it much before the given time, Saju Nair, EVP and head of CV business, PVPL, said.
The company has started selling the new BS-VI range across passenger and cargo segment. There will be a price rise of around Rs 44,000 to Rs 45,000 in the diesel range and Rs 15,000 in the alternative fuel range, and the market will absorb this, Nair said. He expects some impact on sales volume in the first two months but after that it will pick up as this was a livelihood issue for their customers and they will see value in the upgrade. “This is not just a shift to BS-VI, we are giving them a better vehicle with upgraded powertrain and new features,” he said.
The new vehicles will have increased engine power and load carrying capacity, higher ground clearance, revamped cargo space with quick turnaround times, which will be increasing their income by Rs 1 lakh, so, the pay back will be in five to six months or at the most in one year, Nair said.
The time line was stringent and it was a challenge and stretched us, Nair said. For the first time in the industry we have converted a single cylinder engine into a BS-VI and developed a five-speed gear box, he said. The BS-VI diesel engine has been upgraded to 599 cc with ECU with five speed gear box and aluminum clutch. Alternative fuels will run on 230 cc engines.
Upgrades are across all fuel alternatives petrol, diesel, CNG, LPG and also an electric vehicle option. Nair said the company will remain fuel agnostic and continue offering all the variants. Piaggio has gained market share in 2019 when the industry had seen de-growth. “Our market share in three-wheeler cargo is at 42% and passenger three-wheeler market share is at 37% and will grow as last mile connectivity demand grows,” he said. The company will cross the landmark of 30 lakh units sold in the country by end of this fiscal.
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