Its a decade since Piaggio launched its products in India. Within a short span of time, Piaggio has established itself as an undisputed leader in the three-wheeler segment. The company sold 180,000 units in 2009 and the target for the current year is 210,000 units, says the confident Mr. Ravi Chopra, Chairman and Managing Director of Piaggio Vehicle India Private Ltd.
Piaggio has its strongest presence in the three-wheeler, 0.5 tonner, cargo and passenger segment. To further extend its product offering and to strengthen its market leadership in the segment, Piaggio has launched apé mini, a state-of-the-art half tonne cargo four-wheeler. The new product has been uniformly priced at Rs. 1,73,600 lakhs across India. The new product will play an important role in the distinct requirements of customers for “last mile” distribution of products and services.
Mr. Chopra said: “At Piaggio, our emphasis has always been on value creation. Be it product design or performance. We have consistently gone to the market with our customers in mind. Anticipating the customer’s need for a small, classy and comfortable mini truck, we conceived the apé mini to deliver exceptional value and a superior experience to our customers. Today, we are confident the apé mini will outclass others in the half tonne four-wheeler segment and help consolidate our leadership position in this half tonne band.”
“Created on the basis of extensive customer need-gap analysis, apé mini is truly a world class product that will complement Piaggio’s existing three-wheeler portfolio. It should emerge as a preferred option for four-wheeler buyers in this segment on the strength of its operating efficiencies and enhanced earning potential”, Mr. Chopra added.
The apé mini incorporates the exacting high standards that Piaggio is known for internationally. It offers the best mileage in its class – of all 29 kms per litre. It has the largest cargo deck in the category, enabling optimum load capability. At 230 mm, the ground clearance of the vehicle is the highest in its class, ensuring safe and smooth driving over speed breakers and the challenging terrain of congested city roads. These features add up to low operating costs that ensure the best earnings for the buyer. The apé mini has a spacious car-like cabin with sleek fittings, ample leg room and adjustable sliding bucket seats for greater driving comfort. A factory fitted co-driver’s seat also comes as OE with the vehicle.Mr. Chopra says: “The Ape Mini will extend our product range and compliment what we are achieving with the Ape three-wheeler. We would like to grow our marketshare and position in the half tonne segment, whether it is three-wheelers or four-wheelers. We already have 65 per cent marketshare in three-wheelers and this will only increase our marketshare. Through the Ape Mini, we have created an affordable vehicle within the reach of people who have the aspirations of owning a four-wheeled mini truck offering the lowest operating cost and lowest cost of ownership”.
Piaggio’s confidence in the performance of apé mini is evident in the 15-month warranty and 5 free services that the company offers. Additionally, the product will be backed up by Piaggio’s world-class sales and service network of over 760 touch points that consistently provide quality service and spares, 24x7 across India.
Ape three-wheeler
The now legendary apé three-wheeler, with a current customer base of over a million users, pioneered the half tonne cargo segment in India as early as 1999, and opened up a new source of livelihood for SMEs and entrepreneurs across the country. It continues to be the preferred choice of ‘‘first-time users’’ in the transportation business, highly trusted for its economy, load capability and earning potential. Today, Piaggio is the undisputed leaders in the half tonne category.
Will the Ape Mini replace the existing three-wheelers?, Mr. Chopra strongly feels: “Three-wheeler cannot be wished away. The growth potential for the three-wheeled cargo vehicle is likely to grow by 10 to 12 per cent in the next 5 years. The growth in rural infrastructure, retail business and movement of FMCG products, will result in more and more penetration into rural areas. Rural India could well become the hub for future economic growth. A three-wheeler is the most economical mode of transportation and offers lowest cost of operation. The product is very affordable for people who want to start on their own. Hence three-wheeler is bound to grow with the growth in rural areas. In addition to three-wheeler, the four-wheeled half tonne will also grow. We would like to ensure that collectively, three- and three-wheeler put together, we further increase our market share”.
New engines for Ape Truk
Talking about the Ape Mini’s big brother, the Ape Truk, the four-wheeler mini truck launched couple of years back, Mr. Chopra said: “We haven’t really done well in the Ape truck 0.75 tonner. But we have developed a new range of diesel engines, the 1 litre and 1.2 litre state-of-the-art engines. The 1 litre engine will power the new avatar of Ape truck, which will be launched by January 2011. This product will certainly be able to get a better and respectable share”.
Currently the three-wheelers are powered by Greaves and the four-wheeled truck is powered by Lombardini engines. Piaggio is setting up its own engine manufacturing facility at Baramati where the new range of engines will be manufactured. The three-wheeler will continue to be powered by Greaves.
Another interesting segment, which is fast growing is the four-wheeled passenger trucks like the Tata Magic, which was built on the Ace platform. Asked about Piaggio’s plans for a four-wheeled passenger model, Mr. Chopra said: “We are certainly working on a passenger version of the Ape Mini. This will be launched shortly. Its a strategic decision to first launch a passenger version in the 0.5 tonner segment”.
Piaggio has been consistently growing even during years of crisis. In 2009, which was a tough year for the industry, the company sold 180,000 units. Piaggio is expecting a 15 per cent growth during the current year with a target to sell close to 210,000 units in 2010. The company has established enough capacities in its plant at Baramati to cater to the growing demand. The new engine plant and the green field facility for manufacturing Vespa two-wheelers is also coming up Baramati, confirmed Mr. Chopra.
Exports
Exports is one big opportunity which Piaggio has not been able to focus on. The export market potential for three-wheeler, predominantly passenger vehicles, is close to 150,000 units per annum. Most of these are petrol driven vehicles, a product which Piaggio was not present. In the last six months, the company has launched Ape City, a three-wheeled, 0.5 tonner petrol driven passenger three-wheeler. This product has been launched in the domestic market and has also been seeded in export markets. With this product we see a tremendous opportunity in exports, says Mr. Chopra.
Piaggio has a state-of-the-art manufacturing plant at Baramati in Maharashtra, with an installed annual production capacity of over 200,000 three-wheelers and 100,000 four-wheelers. It is also moving towards self-reliance with the completion of its advanced engines plant on the same campus. Piaggio has a 2,100-strong workforce comprising experienced engineers, R&D specialists, plant workers, sales, service and marketing professionals.
Piaggio has been an aggressive player in light transportation vehicle segment, no wonder the company has become market leader in a short span of time. The company’s four-wheeled vehicles though have not met with the kind of success that the company was hoping to. A lot of expectation from the Ape Mini, which looks like will live upto the expectations.
