Trying to cope up with the stagnant markets in Europe, Piaggio is planning to invest in the Asian automobile industries. In the initial phase, it has decided to introduce scooters in the Indian markets. This strategic move by the firm could increase the contribution of the Asian markets in the total sales up to 30-35 per cent by 2010, from the present 20 percent.
The Asian automobile markets have vast opportunities. In order to tap these opportunities, Piaggio has decided to accelerate its production in the Asian markets, including India.
Many firm steps have been initiated in order to achieve optimum growth in these markets. Piaggio has extended its cooperation with Daihatsu Motor in order to get a supply of engines, powertrains and other components for its LTV’s. It also made an agreement with an Indian firm, Greaves Cotton in order to procure diesel engines for three-wheelers.
Piaggio also have plans to re-enter the Indian scooter market by 2010 with a new hybrid design. For this, it had ventured with a well-known two-wheeler manufacturer in India, LML.
In order to boost up its production, Piaggio has invested around 65 million Euros in a plant to churn out 200,000 units of 1 and 1.2 litre diesel engines and powetrains.
Piaggio has planned to build a new two-wheeler facility in India. It is also looking forward to double up its three-wheeler production capacity up to 200,000 units in the next couple of years.
So, be ready as the launch of new and technologically advanced Piaggio scooters can hit the Indian roads very soon.
