“Reaching the 2.5 million mark is also a big motivation for us to try and reach the next goal of 3.5 million vehicles in the shortest time possible.” - Diego Graffi, MD & CEO, Piaggio Vehicles Private Limited

Power of powertrain
When it comes to the small commercial vehicles market in the country, Piaggio has a clear lead in the diesel engine segment with more than 40 percent market share. So, how is the company dealing with the shift towards renewable fuels and electric mobility? Graffi pointed out that one of the strengths that Piaggio has not only here in India but also at the Group level globally is the expertise and know-how related to powertrain. "You are right when you say that the main part of our business here in Indian SCV segment is driven by diesel application. However, given the changing scenario with regards to fuel, we have been investing quite heavily for the last 24 months in new applications in this context," he shared.
Graffi also highlighted that at the recent celebration of the 2.5 millionth vehicle roll out, Piaggio also launched the new series of Apé CNG/LPG fuel vehicles in the Indian market. The Apé Xtra LDX and Apé Auto DX are part of the new water-cooled engine technology range. "This is a strategic initiative to ensure our customers that our three-wheeler vehicles will now be equipped with very efficient, very clean and with high-performance alternate fuel engines - mainly CNG and LPG. In our product investment plan, we are also planning to invest a lot to develop new powertrain that is more suitable for future applications," he shared. Of course, Piaggio's scooter (two-wheeler) business is on petrol and not on diesel application. "The technology is available, and we are leveraging that know-how and expertise at the Group level," Graffi said.
With regards to electric mobility, Piaggio has already introduced the Vespa electric for the Europe and US markets. "The production has started in our Pontedera plant in Italy. The powertrain has been completely developed and produced in-house by Piaggio. In fact, here in India also we have an electric bicycle which is also fully developed and designed in-house by Piaggio. So, we have the technology available and we will be introducing it here in India quite soon," Graffi remarked.

Exports market
Piaggio has also been building its India operations as an export base besides developing the domestics market. Graffi remarks that the export market has been booming for the last few years for Piaggio India as well as for the overall industry. "I have seen quite relevant business growth in 2017 as well as in 2018. We have quite a few importers in India's neighbouring countries like Nepal, Sri Lanka and Bangladesh with whom we are doing quite good business. Recently, for the last 18 months, we have also started to export to some African markets like Kenya, Tanzania, Nigeria, Uganda, and also through our colleagues in Pontedera, we are exploring the Egypt market. My perception is that Africa is a booming market for two wheelers. A lot of other markets are opening up and we are looking at those markets as well. For example, the South East Asia market is also quite fertile. We have recently launched the Apé in Cambodia. We have been exporting to Philippines for the last two years and now we are also looking at Indonesia. We are basically looking at a lot of geographical areas, not to mention South America where we are present since a long time," he shares.
Piaggio India's export revenue share is roughly around 15 percent to 20 percent of its total revenue. Graffi plans to increase the percentage of export as his perception is that the year on year growth will be higher in the export market. "Of course, we have had a very good year in 2018 compared to 2017. Of course, 2017 is not a very good base to compare to due to demonetisation and GST. So, we are looking at very good growth in the domestic market in 2019 as well as 2020 but I believe that the growth will be much more in the export market. I am hoping that the revenue share of exports will cross 25 percent in the next 18 months to 24 months," he explains.

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