JOIN USItalian scooter-maker Piaggio said it will invest €20 million in its India unit and is looking at launching three and four-wheelers in light commercial vehicles (LCVs) space, along with more models of scooters and motorcycles here.
Piaggio Vehicles, a wholly-owned subsidiary of Piaggio Group, inaugurated its latest facility to roll out the world famous Vespa scooters.
“The investment at Baramati is part of our strategic plan, which sees this market as a significant destination in our growth trajectory.
We have planned investment of 50 million euros of which we have already invested 30 million euros in the Baramati plant. We will invest another €20 million in this plant to double the capacity to 3,00,000 units by mid-2013,” Piaggio Group Chairman & CEO Roberto Colaninno said.
The Italian parent has transferred the latest generation products and manufacuring technologies to the Indian plant.
“Going forward we are looking at increasing our product range in scooters and motorcycles to meet the growing demand for two-wheelers here. We are also evaluating the possibilities to launch 3-4 wheeled LCVs and the products will be customised for this market,” Colaninno said.
The domestic unit will also manufacture 1,000-cc plus engines for Indian as well as European markets, he added.
As part of testing this market, Piaggio has already started importing its super bikes from Italy and sold 25 vehicles in the country so far, Piaggio Vehicles India CMD Ravi Chopra said.
The plant here will have an initial annual capacity of 1,50,000 Vespa scooters and the peak monthly capacity will be reached in the Q4 of 2013, Chopra said. The company directly employs over 3,000 and a larger number indirectly, to support its operations.