Piaggio not to enter e-2 wheelers soon, to step up small cargo vehicle biz

Company says the segment in which it will like to position its e-two wheelers is currently very small in terms of volume

Piaggio Vehicles India, the local arm of the Italian automaker, does not plan to have a presence in the electric two-wheeler segment anytime soon and the company will instead focus on the internal combustion engine powered models, the company's top official said.

Piaggio currently sells scooters under the Aprilia and Vespa brands in India. The competition in the e-scooter segment has been growing with Bajaj e-Chetak and Ather Energy models. As newer entrants like Ola Electric launch their scooters, competition is only set to intensify. But Piaggio is not looking to rush to stake its claim.

“We are studying the segment (EV scooters) and seeing the evolution. We shall launch it at some point but the programme is not finalised,” said Diego Graffi, CEO and Managing Director at Piaggio Vehicles India.

According to Graffi, while there is no doubt about the potential of EVs and there is enough policy push, the segment (Rs 1,35,000 to Rs 1,70,000) in which Piaggio will like to position its e-two wheelers, is very small as of now in terms of volume and “the market is very limited.”  “We are looking at the segment of the market that is more in sync with our philosophy,” he said.

Last month, the government made a partial modification of the scheme for FAME in India Phase-II), such as increasing the demand incentive for electric two-wheelers to Rs 15,000 per KWh from the earlier uniform subsidy of Rs 10,000 per KWh for all EVs, including plug in hybrids and strong hybrids except buses. In the latest modification, the department of heavy industries also capped sops for electric two-wheelers at 40 per cent of vehicle cost, up from 20 per cent earlier.

Depending on the model and the variant, some manufacturers, including Ather Energy and Hero Electric cut prices by Rs 15,000-28,000. The price reduction has reduced the price gap between an e-two wheeler and internal combustion engine (ICE) powered ones.

Take Ather Energy’s 450x for instance: After the recent incentives, the exclusive showroom price of the model in Delhi has come down to Rs 1,32,426 from Rs 1,46,926. Honda Activa 125cc, the comparable ICE model to the 450x costs Rs 97,723. However, when compared to some low-selling, niche models like a Vespa SXL 125 which costs Rs 1,17,000 to Rs 1,22,000 (ex-showroom, Delhi) the new prices have come on par.

Meanwhile, the maker of the Ape brand of three wheelers is looking to step up its presence in the last mile delivery segment with new launches. The segment has remained relatively resilient to the disruptions created by the pandemic on back of a robust demand for such vehicles by e-commerce companies. The second largest three wheeler maker in terms of volume launched an EV offering earlier this year. Graffi said it was well accepted by the market. So far it has delivered 250 units.  

The trend in the good carrier segment has been very positive and it has reached 80-90 per cent of the volumes of 2019, said Graffi but the passenger carrier segment will still take some time, he pointed out.

Encouraged by the response to its EV offering in the cargo segment, Piaggio plans to launch another EV cargo model with swappable battery in a few weeks. It has started 300cc powertrain for three and four wheeler cargo and passenger.