As Piaggio Vehicles explores getting a foothold in India’s commuter scooter segment, Diego Graffi is categorical about what the product ought to be like.
“The new offering should always be combined with the key pillars of Piaggio globally in the two-wheeler space. These are design, lifestyle and heritage. It should be something that gives the customer the flavour of having a product that is designed as per Italian standards but customised for Indian applications,” the Chairman and Managing Director told ET Auto in a recent interview.
At present, the company’s scooter portfolio consists of the iconic Vespa which is priced comfortably at over ₹1.2 lakh and is part of the niche premium segment. For the more voluminous commuter category which Piaggio is looking at seriously, the product will need to be two-thirds the price in order to attract customers.
“In order to scale up volumes, we have to invest in a space that has the potential to deliver and this is the commuting segment of scooters where volumes are six million units annually. But obviously, to compete in this category, we need to have the right kind of product that customers are seeking,” said Graffi.
Pricing challenge
Beyond this, it is important to be competitive in terms of price and this is “definitely” a challenge. “However, I think we have all the skills, capabilities and experience to do this,” he added. For a company that has tasted success in the mass three-wheeler segment, it is hopeful that the same can be replicated in the scooter space where affordability will play a big role.
Removing one wheel and developing a scooter is not a big deal.Diego Graffi
“So we already have that in our DNA in India. So removing one wheel and developing a scooter is not a big deal. Of course, it is a challenge but it is not impossible,” reiterated Graffi.Even while plans are still at the conceptualising phase, things are proceeding “very fast”. In the process, there will be an all-new brand emerging from the Piaggio stable in India. The CMD ruled out extension of the Vespa brand to this new commuter scooter reiterating, “No, no, no. Vespa is Vespa. You cannot touch it. This product will be altogether another segment and another customer base.”
On the retail side, there is every likelihood of using the current two-wheeler network that caters to Vespa at least in Tier 1 cities but more dealers need to be roped in for smaller towns where the market for mass scooters truly resides in.
New geography
“The dealer network has to be focused to sell this kind of product especially in rural, Tier 2 and 3 regions. This product is more a commuter — I don’t want to use the word mass — and we have to explore areas where we are not present at all. So it is all together a new geography that we are talking about,” elaborated Graffi.
The company’s long experience with three-wheelers in India means that…
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