The Italian two-wheeler manufacturer, Piaggio unveiled its all-new Vespa scooter manufacturing plant on 28th April 2012. At present, the plant has a production capacity of 1,50,000 units per annum. However, the company is planning to double its capacity by the end of next year. The company offered its Vespa LX125 model scooter with a price tag of Rs. 66,000 in the Indian auto market.
The inauguration ceremony was witnessed by some of the big players of Indian political system. Union Minister for agriculture and Cooperation as well as President of NCP, Sharad Pawar, was present at the event as a Chief Guest with his daughter Supriya Sule, Member of Parliament. He was accompanied with Union Minister for Heavy Industry and public enterprise, Praful Patel.
Besides the big guns from Indian politics and representatives of Piaggio, the ceremony was also attended by Mr. Colaninno, CEO and Chairman of Piaggio Group. He quoted at the ceremony- "It is a historic and proud moment for the Piaggio Group that lays the foundation for us to be a formidable automotive force in India. The investment in Baramati is part of our strategic plan, which sees India as a significant destination in our growth trajectory. The parent company has transferred the latest generation product, process and manufacturing technology to the Indian Vespa plant. The Indian supervisory and managerial staff has extensively worked with their counterparts in Italy to ensure that the standards of quality and reliability are maintained and productivity is enhanced."
Mr. Sharad Pawar expressed his happiness with the investment made by Italian auto maker in Baramati. However, he uttered a concern to Ravi Chopra, MD and Chairman of Piaggio, that he should create job opportunities for the local residents of Baramati. Mr. Chopra replied, “Majority of our blue collar employees are from in and around Baramati. The white collar employees form a very small part. The company recently hired 20 women engineers from an engineering institute in Baramati who will work in the plant here that will produce the iconic Vespa. Mr Pawar will be happy to hear that. I will tell him personally about these 20 engineers when I will meet him next.”
The Italian company launched its first Vespa model in 1946. Later, in 1960's Piaggio formed an alliance with Bajaj and penetrated Indian auto industry. Thereafter in 1971, the license of Piaggio was not renewed, and thus they were forced to leave India. The company attempted to make a comeback in 1983 with a venture with LML but it too ended in 1999. This time Piaggio, the world's fourth largest two-wheeler manufacturer, has made a comeback in Indian Territory without any allegiance with the local player. The company is making a comeback in the Indian auto market after tenure of 13 years with its Vespa LX125 scooter.
Priced at a staggering Rs. 66,000, the all new Vespa LX125 is powered by a four stroke, three valve, single cylinder engine, which is combined with air cooled technology and has a displacement 125 cc. The maximum power churned out by the engine of this scooter is 9 bhp, while it delivers a peak torque of 10.6 Nm. In order to improve the performance of this engine, it is incorporated with a CVT transmission system that enhances the overall acceleration of this two-wheeler. Since the efficient engine of Vespa LX125 delivers a brilliant mileage of 60 kmpl, its 8 litres fuel tank capacity is not an issue.
Piaggio is entering the Indian Auto Market at such a time when two wheelers are selling like hot cakes and it would be interesting to see how the company makes a niche for itself in the market, which is currently dominated by Bajaj and Hero Motocorp. The Italian company is planning to have a network of 50 dealerships in around 35 cities.
