Piaggio India utilising only 40% of its production capacity because of low Vespa sales

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Piaggio India can produce up to a maximum of 1,50,000 scooters each year at their Baramati vehicle factory in the outskirts of Maharashtra. The company although is selling only about 5,000 bikes in the Vespa LX 125 category and a similar number in the VX 125 category every month. What this means is that Piaggio India is utilizing only about 40% of the total production capacity that it has at Baramati, which is not a very profitable situation for the company to be in. According to reports, the high price tag of the Vespa is identified as a reason for the low sales. The high price though is not the sole reason for the poor sales of the bike.

Piaggio had at the time of the Vespa’s inception made tall brags about the scooter, but numerous of those claims fell flat when it came out in the market. For instance, the company had claimed that the scooter would do up to 60 kms every litre, but the buyers of the Vespa LX 125 are of the view that it does not do more than 40 kms per litre in real world conditions. India, being a very mileage minded market made their displeasure known by opting for contemporary scooters. Another factor is that the number of features offered is also very modest when the price is taken into account.

The introduction of the other variant, the Piaggio Vespa VX 125 had temporarily increased the sales marginally.

Paritosh Arya – has written 748 posts on this site.

Piaggio India utilising only 40% of its production capacity because of low Vespa sales, 10.0 out of 10 based on 1 rating

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