Piaggio Aims To Broaden the Two-Wheeler Business in India
Published Date | 2019 February 25
Piaggio plans for the expansion of two-wheeler business will propel the two-wheeler vehicles market globally in the upcoming period.India: Piaggio, an Italian two-wheeler maker plans to expand its sales network in India, as part of scaling up its business to over 350 dealerships in the country by the end of this year. The company currently has around 250 sales outlets and plan to expand volumes in both domestic and export markets. The company has a manufacturing plant in Baramati in Maharashtra, where it manufactures the iconic Vespa alongside the Aprilia SR 150. The company sells brands such as Vespa and Aprilia in the country, sold 74,704 units in India in 2017-18. The company also supported the call for a reduction in GST on two-wheelers. Earlier, major players such as Bajaj Auto, Hero MotoCorp and TVS Motor Company had asked the government to slash GST on two-wheelers from the current 28 percent slab to 18 percent to give relief to the customers. According to BlueWeave Consulting, The Two-wheeler market has emerged as the most vibrant and transforming segment of the overall Indian automobile industry, witnessing significant growth. Rising rural demand and fuel efficiency are among the major factors boosting the growth in the market. Despite the economic slowdown, the Indian automobile industry has been performing consistently well backed by increasing per capita income levels, the high fuel efficiency of two-wheelers and easy financing options available across the country. With the launch of the new model along with the initiative to expand the business by leading players are expected to further boost two-wheeler sales in India during the forecast period. Rising congestion on the roads which is affected by the taxi service business in the country leads to the implementation of the innovative idea by big players like OLA (Ola-Bike) and UBER (Uber-Moto) have included two-wheelers in their taxi service offerings. Since, two-wheelers can avoid traffic jams, and thereby, save commute time, demand for two-wheeler taxis in metro cities is expected to witness robust growth in the coming years. Over the last few years, the demand for premium motorcycles with powerful engines has also been increased. This growth trend in above 250 cc motorcycle category is also expected to continue in the coming years, which would also positively impact the country’s two-wheeler market over the forecast period. According to BlueWeave Consulting‘s upcoming report, Titled- India Two Wheeler Market, By Vehicle Type (Motorcycle, Scooter, Moped, Electric Two Wheeler), By Engine Capacity (<100cc, 100-125cc, 150-180cc, 180-250cc, 250-500cc, >500cc), By region, Size and Forecast, 2015-2015- India Two-Wheeler Industry is the largest in the world in terms of volume of production and sales. The growth in the Indian Automobile Industry owed the most to a steep upsurge witnessed in the two-wheeler segment in the past few years. The volume growth recorded in the 2014-15 fiscal year stood at a commendable profit percent on a year-on-year basis. The 'Make in India' campaign of the Government of India is also going to attract more foreign investment into Indian Two-Wheeler Industry creating further growth opportunities in the coming years.