Piaggio Vehicles to set up diesel engine plant in Pune

Venkatachari Jagannath
01 June 2007

Chennai: With the market for diesel engine powered light commercial vehicles (LCV) growing at a fast clip, the Pune-based Piaggio Vehicles Private Limited has decided to set up a two-lakh units per annum diesel engine and gear box plant for €65 million. The Rs1,500-crore turnover company is a wholly owned subsidiary of Piaggio & C Spa, Italy.

Speaking about the project chairman and managing director Ravi Chopra said, the plant would cater to the domestic market needs as well as the needs of European markets. "This investment is made as we see great opportunity in three and four wheeler LCV markets. The plant will be located at Baramati close to our existing Pune facility."

The company is experiencing good growth in the three wheeler passenger carrying vehicle segment, mainly driven by the demand in Tamil Nadu and Kerala. Last year the company sold 1.4 lakh units as against 1 lakh units in 2005. Further the company has entered the four wheeled goods carrier market with its Ape truk. And it is logical for the company to roll out a four-wheeled passenger vehicle in a short time.

Ape apes Ace
Even though Chopra says that ape truk is not targeted against Tata Motors Limited''s Ace it is clear Piaggio Vehicles would like to have a share in the growing mini-truck market. It may be recalled Tata Motors virtually created this market with its Ace, a four wheeled sub one tonne goods carrier. Till Ace was launched, three-wheelers like Minidor, Champion, Vikram, Bajaj GC 1000 and others catered the sub one tonne good carrier market.

According to Piaggio''s director, sales, Ashutosh Khosla, "The total three wheeler market size in India is around 4.05 lakh units. 55 per cent of that is the goods carrier market which has vehicles with carrying capacity starting from 0.5 tonne and going up to 1 tonne."

Priced at Rs2.15 lakh in Chennai Ape truk is far cheaper than Tata Ace. In addition ape truk can carry 865 kg vis a vis Tata Ace 745 kg. Further the kerb weight of Piaggio''s vehicle is lower by a handsome 120 kg when compared to Tata Ace. The lower kerb weight might give better fuel efficiency for Ape truk owners.