The Hindu Business Line : Piaggio plans new variants in sub 2-tonne category

The company, which recently launched its pick up truck ‘Ape’ in South India, plans to introduce new products below the sub two-tonne category and above one-tonne by 2010. “We are working on introducing additional variants in the sub one-tonne, one-tonne and below two-tonnes category by 2010,” said Mr Ravi Chopra, Chairman and Managing Director, Piaggio India, at the launch of its CNG three-wheeler Ape.

Suitable conditions

Mr Chopra said that the macro-economic conditions including rural marketing initiatives of FMCG companies were suitable for the growth of the LCV market in the country and the company plans to be a full range player in the segment. Piaggio, which introduced its sub one-tonne truck ‘Ape’ recently, expects to roll out the product across different regions of the country by March 2008. It estimates the market in this segment to be growing at about 20 per cent.

Mr Chopra said that the company was focused on retaining its 44 per cent market share in the three-wheeler cargo segment. Further, the company finds increased prospects in the export market with the launch of its CNG cargo three-wheeler.

Manufacturing facility

Mr Chopra also said that the company was investing €60 million for a manufacturing facility for diesel engines, with a capacity of two lakh units, which is likely to be operational by the end of 2009. This would be for the domestic market as well to cater to the demand of its Italy-based parent company Piaggio.

Mr Chopra, however ruled out any plan of diversifying into the two or the four wheeler passenger vehicle segment stating that the company’s investments and capacity were all being focused on its three-wheeler, four-wheeler LCVs and towards the commissioning of its new engine manufacturing unit at Baramati. Last year, the company sold 1,38,000 of its passenger and cargo three-wheelers and is expecting to sell about 1,60,000 this calendar year.

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