The Retro Vespa Is Back

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[<p>The Italian major Piaggio on Thursday launched the iconic brand Vespa in the Indian market with a whopping price tag of Rs 66,661 (Ex-showroom&nbsp; Mumbai).<br><br>Though it is the third comeback, the company is bullish on the niche segment they are playing in and expects India to outsell Vespa's global sales across various markets in the next two to three years. In 2011, Piaggio sold 1,50,000 units of the Vespa globally. The company earlier sold Vespa in collaboration with Bajaj Auto which ended in 1980's and later with LML in 1999.<br><br>"There is no baggage from the past. We are positioning ourselves in the premium category where no other scooter manufacturer is present," says Ravi Chopra, chairman and managing director of Piaggio India. Though the Vespa is priced at 15-25 per cent higher than scooters such as Honda Activa, Suzuki Access and Mahindra Duro, the company believes that it is still 40-50 per cent cheaper than the rest of the markets because of the country's lower production cost. Other scooters sell for between Rs 38,000 and Rs 45,000 in India. The top selling Honda Activa, is priced at Rs 43,000.<br><br>Talking about the investment numbers, Piaggio already invested 30 million Euros in the current Baramati plant on two-wheelers and expecting an additional investment of 20 million Euros by mid 2013. The company has also started working on doubling the capacity of it's plant to 3,00,000 units by mid of 2013, which currently produces 150,000 units annually. The company also manufactures its commercial vehicles and four-wheelers in the Ape range in the same plant.</p>