Piaggio, the brand from Italy is the fourth largest producer of motorcycles and scooters in the world. It also produces compact commercial vehicles. According to the recent grapevines surrounding the brand, Piaggio could make India a manufacturing hub for its three-seater micro city car intended for Europe. In 2010, Piaggio revealed a car with the code name NT3 which is 2.4 meter in length and is powered by a 350cc engine; this car is expected to be all set for launch in 2015. Europeans are being attracted towards the concept of micro car which owing to their petite frame are easily maneuverable in the busy cities of Europe. The micro car segment is currently enjoying the popularity with the Daimler’s Smart and now Piaggio too wants to rise and shine in this growing market of micro cars.
The choice of manufacturing hub as India is pretty simple and obvious one due to its low cost conditions; Vietnam can also be considered as an option for this attempt of bringing down the costs of the car. According to the CFO of Piaggio group Mr. Gabriele Galli, the most significant aspect of a micro car segment is the cost and the company is going to manufacture a car that will cost less than the Daimler Smart. The company has plans of releasing the Piaagio micro car with petrol, diesel and hybrid as engine options. A 200cc variant of the Piaggio micro car is also on the charts which will come forth as the rival of Bajaj RE60 which is 200cc people carrier that Bajaj revealed at the 2012 Auto Expo held in Delhi. A feasibility study for manufacturing these micro cars has also been conducted in the country. The popular brand ‘Vespa’ of scooters in India is being manufactured by Piaggio India at a plant with a capacity of 150,000 units. Recently a premium model of Vespa was launched by the company. The exclusive price in a showroom of Maharashtra for this Vespa LX125 is Rs. 66,661