The name which became synonymous with scooters during our teens,
Vespa, is all set to make a comeback in probably the most luring and profitable two wheeler markets, India. The Italian company Piaggio, makers of Vespa line of scooters, has finally decided to re-foray into the Indian market and this time as a fully owned subsidiary. The company would be investing around 30 million rupees over two years to set up a plant with a production capacity of 1.5 lakh two wheelers. The strategy and plannings of the operation of the company have been discussed on the higher scale for sale of two wheelers in the Indian market.
Piaggio entered India during the 1960s in collaboration with Bajaj Auto for the first time. After license rejection in 1971 due to India’s privatization initiatives, LML had to break their alliance with Bajaj. After more than a decade Piaggio returned back in 1983, this time with a new Joint Venture, LML and a competitor to Bajaj Auto. Vespa brand of scooters enjoyed a cult status in the Indian market with superior engines and greater fuel efficiencies. However, due to disputes arising between partners, LML procured Piaggio’s stake in 1999 resulting in the conclusion of the JV. More than a decade later Piaggio is planning to foray into the Indian market yet again. The difference this time, however, would be that Piaggio would enter the India market as a fully owned subsidiary of the Italian firm.