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Time of India
6 days ago
- Automotive
- Time of India
Piaggio's new commuter scooter will have a flavour mix of Italy and India
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 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 there is a fair degree of market intelligence when it comes to smaller cities and towns. However, a scooter is an all-new animal and will require specialised skills in marketing and after-sales service to make things work well. Luckily, we have a good vendor base already that we can use for the new Graffi Likewise, the pricing of the product needs to hit the sweet spot and this is where Piaggio's suppliers will have a key role to play. 'Luckily, we have a good vendor base already that we can use for the new scooter,' he said. Plans are already underway to send shipments overseas to Africa, Turkey and many other markets across the globe. When this new product becomes a reality, it will mark the wheel coming full circle for Piaggio in India. Old-timers will recall the heady days of the 1980s and '90s when the Italian automaker had an alliance with the Kanpur-based LML where its mass scooters were the closest rival models to Bajaj Auto's range of the Chetak, Super etc. India comeback story When LML and Piaggio split eventually, the latter decided to get into the cargo three-wheeler space as part of its second innings for India. It was a masterstroke because this was a larger unexplored arena where the chance of growth were stronger. Piaggio soon became a familiar brand here and then gradually stepped into the more glamorous space of scooters and motorcycles with Vespa and Aprilia. Also read:Piaggio plans larger scooter portfolio for India beyond Vespa The group's global CEO, Michele Colaninno has been a keen advocate of the India growth story and has been pushing for a bigger role here in terms of new products and making the country a global hub for vehicles and components. Graffi said the CEO was very 'forward thinking' and saw India as a great opportunity. 'He has a particular appreciation for India and always perceives that we could do better looking at the potential here,' he added. Colaninno was in India a little over three months ago where he got around to to see the market. He visits the country at least every year and each time he sees it, there is something new in terms of technology or the changing face of vehicles on the road that grabs his eye. From his point of view, India remains a fast growing market that hold tremendous potential for companies like Piaggio. Rebooting scooter template It was a little over a year ago when Colaninno had spoken of redefining the company's scooter template in India by way of an entry into the commuter space. 'The mistake we have done in the past is more on the scooter side, where we have not been able to face the competition of low-cost vehicles,' he had said. While making clear that the company would continue to be in the high/premium end with Vespa and Aprilia models, he said this perhaps was not enough in terms of the overall scooter strategy. 'But at the same time, I think we have to be ready and able, more able than ready to fill the gap, let's say, with the competition that we have on scooters,' said Colaninno. There was a specific reference to competitors who have had a good run in the mass scooter space where numbers continue to grow at a brisk pace. 'If you take the Honda Activa, if you take TVS, they produce millions and millions of vehicles,' he pointed out. We will take the right decisions to be ready and enter the big volume market there. Not with the Vespa, not with the Colaninno The Piaggio Group CEO was, however quick to add that such a comparison would not be apt. 'You cannot compare us with Honda, obviously, which has been there in the two-wheeler market for years in India. But I think that we will take the right decisions to be ready and enter the big volume market there. Not with the Vespa, not with the bike.' New strategy for India It is keeping this objective in mind that Piaggio believes the time has come to take a serious relook at its scooter business model for India. 'I think that we have to put in place a new strategy for the two-wheeler market in India. It is true that it is moving towards a high level of consumer business, but some mistakes have been done over there, especially on two-wheels,' said Colaninno. The Italian automaker is clear that this does not mean that the focus on premium models will be diluted. As he made clear, the company is satisfied with the response to the Aprilia RS 457 medium displacement bike that was launched at a price of over ₹4 lakh. 'The actual management — the new management team — is just people that we have decided to put in place on the R&D. But that does not mean that we will exit the premium market, because India is growing on GDP per capita and it will grow slowly, but we are ready to catch the growth. Numbers are not millions, but with the RS 457, we are very satisfied,' said Colaninno.
Economic Times
03-08-2025
- Automotive
- Economic Times
Piaggio expects L5 electric 3-wheeler penetration to reach 50pc by mid-2028
Small commercial vehicle maker Piaggio Vehicles is expecting L5 electric three-wheeler segment penetration in the domestic market reaching 50 per cent at the most by mid-2028, owing to a structural shift and other factors, a top company official has said. The company, which last month rolled out two new electric passenger three-wheelers -- the all-new Ape E-City Ultra and upgraded Ape FX Maxx- also said there is a need for the government to provide clarity on the issue of continuation of the incentives. Piaggio Commercial Vehicles Pvt Ltd (PVPL) is the Indian subsidiary of Italian auto major Piaggio Group. "There is a spike in the penetration of L5 category electric three wheelers in the country in the last one-and-a-half years. And this is when the government incentives under the FAME program have reduced to one-fourth in the same period," Diego Graffy, Chairman and Managing Director of PVPL, told PTI in an interaction. He said that if the level of penetration continues at this pace, "we expect this to reach 50 per cent by the end of 2027 or the beginning of mid-2028 even if the incentives are withdrawn, as there is a structural shift taking place in the market." There are two categories-- L5 and L3-- in the electric three-wheeler segment. L5 Category refers to three-wheeler auto-rickshaws for carrying passengers or cargo while e-carts fall in L3 category. Both the Central Government and state governments are promoting the faster adoption of EVs through various fiscal incentives to the EV buyers. The second phase of the government's flagship scheme, Faster Adoption and Manufacturing of Electric Vehicles (FAME), launched in 2019 with an initial outlay of Rs 10,000 crore, later increased to Rs 11,500 crore, ended in March last year. Subsequently, a new PM E-Drive Scheme with an outlay of Rs 10,900 crore for two years to boost EV sales, replacing FAME programme was announced in September 2024. "The Government reducing the subsidy to one-fourth in the last one-and-a-half years could have definitely been a big disruption (in terms of demand) but instead of depressing the market, it has only kept on increasing. It means that the change or the shift that is happening now is structural and not anymore incidental. And this shift is happening for multiple reasons," Graffy said. Apart from the structural shift, the factors for the higher penetration include improved charging infra, lower cost of acquisition and ease of financing and servicing. "These challenges have largely been addressed in this period leading to increased penetration, particularly of the passenger segment," he said. According to industry statistics, L5 passenger electric three-wheeler penetration accounted for 22.8 per cent in the total EV sales in FY 25 while the goods e-three-wheeler penetartion stood at 21.5 per cent in the same period. Also, in the April-June quarter of this fiscal, as much as 32.4 per cent of the total ev penetration was recorded in the passenger e-three wheeler segment and 22.8 per cent in the cargo e-three-wheeler segment. Graffy said that the adoption rate across Southern and Western parts of the country however, is still much lower, adding that, it is expected to increase in the next couple of years and when it happens, the overall penetration rate would go much higher than 50 per cent." He said that the e-commerce transition was leading to the demand for cargo e-three-wheelers, which is on the wane now while the passenger segment is picking up very rapidly due to the reason cited earlier. Due to a structural transition that we see, now the passenger segment will have a much higher rate of adoption in the next few months, he stated. He said that Piaggio Vehicles is "maintaining" more or less the pace at which the industry is growing, adding that the company keeps on renewing its product portfolio every two years since 2019 when it first introduced its e-three-wheeler in the country. "We are not doing (renewing products) so frequently unlike many other players are doing in the space. We prefer to take our time. So, we are reviving our products every two years trying to introduce new features with innovation and technology," he said. "We believe EVs are an opportunity to reshape urban transport and improve livelihoods. New ApA© E-City Ultra and ApA© E-City FX Maxx are being built with these realities in mind. They deliver what the Indian customer needs: best in class range, low battery degradation, strong performance, and minimal operating costs," Graffy said on the launch of the two models, which are priced at Rs 3.80-lakh and Rs 3.30 lakh, respectively. "These vehicles are enablers of economic mobility, future-ready solutions that can scale across cities and small towns alike. Our focus is not only on innovation but also on contributing to a more inclusive and sustainable future," he said. On the incentives, he said," uncertainty on (the continuation) of the incentives is definitely very disturbing and some clarity going forward is required." "Even if the government wants the incentives to discontinue from a particular date, declare it clearly so that every OEM can plan the strategy accordingly," Graffy said.
Time of India
03-08-2025
- Automotive
- Time of India
Piaggio expects L5 electric 3-wheeler penetration to reach 50pc by mid-2028
Small commercial vehicle maker Piaggio Vehicles is expecting L5 electric three-wheeler segment penetration in the domestic market reaching 50 per cent at the most by mid-2028, owing to a structural shift and other factors, a top company official has said. The company, which last month rolled out two new electric passenger three-wheelers -- the all-new Ape E-City Ultra and upgraded Ape FX Maxx- also said there is a need for the government to provide clarity on the issue of continuation of the incentives. Explore courses from Top Institutes in Please select course: Select a Course Category Technology PGDM MBA Cybersecurity Artificial Intelligence Data Science MCA others Product Management Design Thinking Healthcare Finance Operations Management Management Degree healthcare Public Policy Digital Marketing Data Analytics Leadership Project Management Data Science CXO Others Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details Piaggio Commercial Vehicles Pvt Ltd (PVPL) is the Indian subsidiary of Italian auto major Piaggio Group. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like With temperatures hitting 95°F, this is the mini air conditioner everyone's buying in the U.S News of the Discovery Undo "There is a spike in the penetration of L5 category electric three wheelers in the country in the last one-and-a-half years. And this is when the government incentives under the FAME program have reduced to one-fourth in the same period," Diego Graffy, Chairman and Managing Director of PVPL, told PTI in an interaction. He said that if the level of penetration continues at this pace, "we expect this to reach 50 per cent by the end of 2027 or the beginning of mid-2028 even if the incentives are withdrawn, as there is a structural shift taking place in the market." Live Events There are two categories-- L5 and L3-- in the electric three-wheeler segment. L5 Category refers to three-wheeler auto-rickshaws for carrying passengers or cargo while e-carts fall in L3 category. Both the Central Government and state governments are promoting the faster adoption of EVs through various fiscal incentives to the EV buyers. The second phase of the government's flagship scheme, Faster Adoption and Manufacturing of Electric Vehicles (FAME), launched in 2019 with an initial outlay of Rs 10,000 crore, later increased to Rs 11,500 crore, ended in March last year. Subsequently, a new PM E-Drive Scheme with an outlay of Rs 10,900 crore for two years to boost EV sales, replacing FAME programme was announced in September 2024. "The Government reducing the subsidy to one-fourth in the last one-and-a-half years could have definitely been a big disruption (in terms of demand) but instead of depressing the market, it has only kept on increasing. It means that the change or the shift that is happening now is structural and not anymore incidental. And this shift is happening for multiple reasons," Graffy said. Apart from the structural shift, the factors for the higher penetration include improved charging infra, lower cost of acquisition and ease of financing and servicing. "These challenges have largely been addressed in this period leading to increased penetration, particularly of the passenger segment," he said. According to industry statistics, L5 passenger electric three-wheeler penetration accounted for 22.8 per cent in the total EV sales in FY 25 while the goods e-three-wheeler penetartion stood at 21.5 per cent in the same period. Also, in the April-June quarter of this fiscal, as much as 32.4 per cent of the total ev penetration was recorded in the passenger e-three wheeler segment and 22.8 per cent in the cargo e-three-wheeler segment. Graffy said that the adoption rate across Southern and Western parts of the country however, is still much lower, adding that, it is expected to increase in the next couple of years and when it happens, the overall penetration rate would go much higher than 50 per cent." He said that the e-commerce transition was leading to the demand for cargo e-three-wheelers, which is on the wane now while the passenger segment is picking up very rapidly due to the reason cited earlier. Due to a structural transition that we see, now the passenger segment will have a much higher rate of adoption in the next few months, he stated. He said that Piaggio Vehicles is "maintaining" more or less the pace at which the industry is growing, adding that the company keeps on renewing its product portfolio every two years since 2019 when it first introduced its e-three-wheeler in the country. "We are not doing (renewing products) so frequently unlike many other players are doing in the space. We prefer to take our time. So, we are reviving our products every two years trying to introduce new features with innovation and technology," he said. "We believe EVs are an opportunity to reshape urban transport and improve livelihoods. New ApA© E-City Ultra and ApA© E-City FX Maxx are being built with these realities in mind. They deliver what the Indian customer needs: best in class range, low battery degradation, strong performance, and minimal operating costs," Graffy said on the launch of the two models, which are priced at Rs 3.80-lakh and Rs 3.30 lakh, respectively. "These vehicles are enablers of economic mobility, future-ready solutions that can scale across cities and small towns alike. Our focus is not only on innovation but also on contributing to a more inclusive and sustainable future," he said. On the incentives, he said," uncertainty on (the continuation) of the incentives is definitely very disturbing and some clarity going forward is required." "Even if the government wants the incentives to discontinue from a particular date, declare it clearly so that every OEM can plan the strategy accordingly," Graffy said.
News18
03-08-2025
- Automotive
- News18
Piaggio expects L5 electric 3-wheeler penetration to reach 50pc by mid-2028
Mumbai, Aug 3 (PTI) Small commercial vehicle maker Piaggio Vehicles is expecting L5 electric three-wheeler segment penetration in the domestic market reaching 50 per cent at the most by mid-2028, owing to a structural shift and other factors, a top company official has said. The company, which last month rolled out two new electric passenger three-wheelers — the all-new Ape E-City Ultra and upgraded Ape FX Maxx- also said there is a need for the government to provide clarity on the issue of continuation of the incentives. Piaggio Commercial Vehicles Pvt Ltd (PVPL) is the Indian subsidiary of Italian auto major Piaggio Group. 'There is a spike in the penetration of L5 category electric three wheelers in the country in the last one-and-a-half years. And this is when the government incentives under the FAME program have reduced to one-fourth in the same period," Diego Graffy, Chairman and Managing Director of PVPL, told PTI in an interaction. He said that if the level of penetration continues at this pace, 'we expect this to reach 50 per cent by the end of 2027 or the beginning of mid-2028 even if the incentives are withdrawn, as there is a structural shift taking place in the market." There are two categories– L5 and L3– in the electric three-wheeler segment. L5 Category refers to three-wheeler auto-rickshaws for carrying passengers or cargo while e-carts fall in L3 category. The second phase of the government's flagship scheme, Faster Adoption and Manufacturing of Electric Vehicles (FAME), launched in 2019 with an initial outlay of Rs 10,000 crore, later increased to Rs 11,500 crore, ended in March last year. Subsequently, a new PM E-Drive Scheme with an outlay of Rs 10,900 crore for two years to boost EV sales, replacing FAME programme was announced in September 2024. 'The Government reducing the subsidy to one-fourth in the last one-and-a-half years could have definitely been a big disruption (in terms of demand) but instead of depressing the market, it has only kept on increasing. It means that the change or the shift that is happening now is structural and not anymore incidental. And this shift is happening for multiple reasons," Graffy said. Apart from the structural shift, the factors for the higher penetration include improved charging infra, lower cost of acquisition and ease of financing and servicing. 'These challenges have largely been addressed in this period leading to increased penetration, particularly of the passenger segment," he said. According to industry statistics, L5 passenger electric three-wheeler penetration accounted for 22.8 per cent in the total EV sales in FY 25 while the goods e-three-wheeler penetartion stood at 21.5 per cent in the same period. Also, in the April-June quarter of this fiscal, as much as 32.4 per cent of the total ev penetration was recorded in the passenger e-three wheeler segment and 22.8 per cent in the cargo e-three-wheeler segment. Graffy said that the adoption rate across Southern and Western parts of the country however, is still much lower, adding that, it is expected to increase in the next couple of years and when it happens, the overall penetration rate would go much higher than 50 per cent." He said that the e-commerce transition was leading to the demand for cargo e-three-wheelers, which is on the wane now while the passenger segment is picking up very rapidly due to the reason cited earlier. Due to a structural transition that we see, now the passenger segment will have a much higher rate of adoption in the next few months, he stated. He said that Piaggio Vehicles is 'maintaining" more or less the pace at which the industry is growing, adding that the company keeps on renewing its product portfolio every two years since 2019 when it first introduced its e-three-wheeler in the country. 'We are not doing (renewing products) so frequently unlike many other players are doing in the space. We prefer to take our time. So, we are reviving our products every two years trying to introduce new features with innovation and technology," he said. 'We believe EVs are an opportunity to reshape urban transport and improve livelihoods. New Apé E-City Ultra and Apé E-City FX Maxx are being built with these realities in mind. They deliver what the Indian customer needs: best in class range, low battery degradation, strong performance, and minimal operating costs," Graffy said on the launch of the two models, which are priced at Rs 3.80-lakh and Rs 3.30 lakh, respectively. top videos View all 'These vehicles are enablers of economic mobility, future-ready solutions that can scale across cities and small towns alike. Our focus is not only on innovation but also on contributing to a more inclusive and sustainable future," he said. On the incentives, he said," uncertainty on (the continuation) of the incentives is definitely very disturbing and some clarity going forward is required." 'Even if the government wants the incentives to discontinue from a particular date, declare it clearly so that every OEM can plan the strategy accordingly," Graffy said. PTI IAS MR MR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 03, 2025, 20:00 IST News agency-feeds Piaggio expects L5 electric 3-wheeler penetration to reach 50pc by mid-2028 Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
