Vespa price cut; looks to expanding market
Piaggio Vehicles Private Limited, the makers of the iconic Vespa scooter has cut price for its classic LX 125 scooter to Rs 59,960 ex-showroom in a bid to take on market leaders Honda. The Class LX 125 was priced at Rs 66,661 ex-showroom in Bangalore before the price cut that is effective from January.
India's scooter market is growing at a healthy 20.06% in a flat automotive market. India's scooter and scooterettee sales stood at 1.94 million vehicles from April to November, according to industry lobby Society of Indian Automobile Manufacturers. Honda Scooters is the leader in India’s scooter segment has more than 50% of the market share. Piaggio said it has sold over 25,000 units of its classic scooter since the April 2012 launch in India and is sharing the cost efficiencies through volumes that achieved to customers.
"In keeping with the philosophy of maximising customer value, Piaggio would be sharing the consequent benefits with potential consumers beginning January 2013. This would lower the acquisition cost of the Vespa with the ex- showroom purchase price point now starting at Rs. 59,990 and taking the iconic brand to a wider set of aspiring consumers," Piaggio said in a statement.
Piaggio's Vespa classic LX 125 competes with scooters of other brands such as Hero Motorcorp's Maestro, TVS Wega, Yamaha Ray, Suzuki Access 125, Mahindra's Duro Dz 125 and Rodeo 125 and Suzuki's Swish 125. The Piaggio vehicle is priced the highest among competing products.
"As we move into 2013, we are looking to increase this base and consolidate our national presence. From a business point of view, we've been able to build a strong network of dealers and partners much faster than we thought, thereby enhancing the reach and penetration," said Ravi Chopra, Chairman and Managing Director, PVPL. Vespa price cut; looks to expanding market | wheelsunplugged.com