Piaggio considers India scooter entry, eyes Africa exports, cautious on EVs
Italian two-wheeler manufacturer Piaggio is preparing to assess its prospects in India’s mass-market scooter segment, with evaluations set to begin in June 2025. Currently known in India for its premium Vespa and Aprilia offerings, the company is considering a broader product strategy aimed at competing with high-volume players in the country’s fast-growing scooter market.
The decision follows internal studies and signals a shift in Piaggio’s approach, as the brand moves beyond its niche status to potentially cater to India’s expanding middle-class consumer base. This demographic shift, coupled with growing GDP per capita, is prompting the company to re-evaluate its positioning in a market dominated by popular models from Honda and TVS.
Should the evaluation yield positive outcomes, Piaggio plans to not only launch a new scooter range tailored for Indian consumers but also leverage its Indian operations as an export base for African markets. The company sees Africa as a promising region with long-term growth potential and considers it a strategic expansion target.
Internally, Piaggio has restructured its team to focus on developing competitively priced scooters capable of holding their own in a cost-sensitive environment. While the premium Vespa and Aprilia models will remain in the portfolio, the company acknowledges the limitations of catering exclusively to the high-end segment in India.
Despite being equipped with electric vehicle options, Piaggio is taking a cautious approach toward electrification in India, citing low profit margins and the need for improved purchasing power and cost efficiencies. The company is monitoring the situation, especially in the three-wheeler electric vehicle space, where it already has a substantial footprint and manufacturing capacity.
Piaggio continues to invest in both combustion engine and electric technologies to ensure readiness for evolving market demands. While India presents a bright spot, the company is facing headwinds in other Asian markets. Growth remains tepid across the region, with Vietnam showing slight signs of recovery, in contrast to continued stagnation in markets like China, Thailand, and Indonesia.
In China, where Piaggio operates a manufacturing facility, restructuring efforts are underway with plans to complete the transition by 2026. The company is also exploring product localisation strategies to better align with the domestic market, particularly in the electric mobility segment, which is more mature in China than elsewhere.
Overall, Piaggio’s strategy reflects a measured expansion—balancing growth opportunities in emerging regions with prudent evaluation of market dynamics and profitability across product categories.
