Piaggio's Growth Strategy

Piaggio is applying a multi-pronged strategy for growth, which includes alternate fuel three-wheelers and small commercial four wheelers

- Ashish Bhatia

Enjoying a 25 to 30 per cent market share in the Indian three-wheeler market with the sale of an estimated 50,000 units a year (635,698 threewheelers were sold in FY2017-18, and 511,879 three wheeelers were sold in FY2016-17), Piaggio Vehicles Pvt. Ltd. is renewing its thrust on alternate fuels. Pioneering the diesel three-wheeler space after entering the Indian market in 1999, the company has chalked out a new alternate fuel strategy. It is in-line with the changing market requirements, and involves threewheelers and small commercial four-wheelers. Commanding a good hold on the diesel threewheeler cargo segment with its Ape platform, Piaggio’s alternate fuel strategy looks beyond petrol, LPG and CNG powered Ape threewheelers in the cargo as well as the passenger domain. It could also include electric vehicles depending upon how the market shapes up. Entering the passenger threewheeler segment in 2013 with the launch of a petrol autorickshaw, the company rolled out the 2.5 millionth Ape (Xtra LDX) on July 26, 2018, from the manufacturing plant at Baramati, Pune, with an installed annual capacity of over 300,000 three-wheelers and 80,000 four wheelers.

The roll out of 2.5 millionth Ape was accompanied by an announcement of super warranty scheme, which is claimed to be an industry first, and entitles a buyer of Ape diesel three-wheeler to a warranty of 42 months or 1.2 lakh kilometres, whichever is earlier. For those who buy the Ape CNG, LPG or petrol three-wheeler, the warranty is for 36 months or one-lakh kilometres, whichever is earlier. Apart from the super warranty scheme, Piaggio has also introduced a personal accident insurance program for an Ape buyer. Claimed to further elevate the value proposition according to Ravi Chopra, Chairman, Piaggio Vehicles Pvt. Ltd., the personal accident insurance is said to have been introduced post conducting a survey of three-wheeler operators.