Piaggio to develop key two-wheel market
June 22, 2010
Filed under Features
The Piaggio Group board of directors has approved a plan to produce and sell Vespas and other two-wheelers in India, the company recently announced.
India’s two-wheeler market — the world’s second-largest — grew at an average annual rate of 7 percent between 2004 and 2009, with 8.4 million vehicles sold in 2009, according to the Piaggio press release.
To serve this market, Piaggio will construct a new facility to produce up to 150,000 units per year, with the expectation to launch the Vespa LX 125 by the end of 2012.
The plan details investments totaling $37 million in financial years 2010 and 2011, with the goal of achieving revenues of approximately $86 million in 2015 on sales of approximately 110,000 scooters, the company said.