Mumbai, Jan 22 (IANS) Italian auto major Piaggio group is planning to produce two-wheelers in India by 2010 through its wholly owned subsidiary, Piaggio India.
The firm already has a unit in Baramati near Pune to produce load-carrying three and four-wheelers. It is planning to set up the two-wheeler factory nearby. “We have acquired land near our Baramati factory to set up the two-wheeler plant,” said Piaggio chairman Roberto Colaninno here Tuesday.
Besides, the group will invest up to 65 million euros ($94 million) for developing engines.
“This will include twin-cylinder turbo diesel and diesel engines up to 1200 cc,” Colaninno said
Until now Greaves Cotton Ltd was supplying engines to Piaggio Vehicles Pvt Ltd (PVPL). Greaves Cotton will continue to supply the mono-cylinder diesel engine, he said.
Asked if Tata Nano’s entry would steal the market share of two-wheelers, the official said, “We are catering our product for rural India.”
“We are trying to target the rural parts of the country, where the roads are not level,” said Colaninno.
Currently, Piaggio produces ‘Ape’ three-wheeler range of passenger and cargo vehicles. In July last year, the group had launched the new ‘Ape Truck’ four-wheel commercial vehicle with carrying capacity of 800 kg.
In just four years, PVPL has tripled its sales volume from 49,600 vehicles in 2003 to more than 154,000 vehicles in 2007.