Piaggio will be bringing back the Vespa brand of scooters in India in Q1 of 2012 and it has major plans to ensure that it leaves no stone unturned in ensuring success of the Vespa LX 125 scooter. Remember, the company will be re-entering India all on its own this time and won’t have any local partner.
The company will not only retain the originality of Vespa’s scooters, but will also ensure maximum possible localisation of vehicle components, in order to ensure that its products are competitively priced. The company has already established a vendor sourcing group, which has been tasked with finding the appropriate vendors for the various components of the vehicle, subject to final approval of the parent company in Italy.
Ravi Chopra, Managing Director, Piaggio Vehicles -
Vespa is iconic like the Beatles. This time around, the company is not coming back to India through a partner but on its own. India is a significant destination for investment and offers immense opportunities. Since 2002, the scooter market has picked up pace here and has been growing at a Cumulative Annual Growth Rate (CAGR) of 13%.
The company is also looking to bring in a wider range of products into the Indian two-wheeler market from the various brands it has in its portfolio, but all this currently hinges on the success of the Vespa brand of products in the country.
The company wants to create a separate dealer network for the Vespa brand in the country, in order to give the brand its own identity and recognition. The company is looking to set up a quality dealer network along with some boutiques, to create awareness amongst the people about its products. The company could look into using its existing dealer network for promoting the LX 125 and also for retailing it.
The company is looking to invest 30 million Euros into its Indian operations during financial years 2010 and 2011 and with its manufacturing facility located at Baramati in Pune already having an installed capacity of 1,50,00 units, with the ability to be expanded further according to the demands of the market, the company seems to have covered all grounds for its third innings in the Indian two-wheeler space.
Source – The Financial Express
Beatles is a pop and rock band dude.
It’s Beetles, not Beatles.
[...] has taken a leave of 15 years in India and in its third attempt, it will try selling scooters and three-wheelers. The first product from its stable to be introduced in India is the 125cc Vespa LX scooter in 2012 [...]