Interview: Piaggio’s Ravi Chopra and Stefano Pelle talk about the company’s model expansion plan

ZEEGNITION Editor-in-Chief Adil Jal Darukahanwala talks to Ravi Chopra and Stefano Pelle from Piaggio about the three-wheeler market and Vespa’s upcoming product launches.

Adil Jal Darukhanawala: Piaggio in India is not just about Vespa or the two-wheeler, but also the three-wheeler which is the last mile mobility transport solution in the country. So let’s talk about three-wheelers first with Ravi who’s spearheaded Piaggio for a long time. Is the three-wheeler still relevant as a last mile transport operation in India?

Ravi Chopra: Let me tell you, the three-wheeler cannot be wished away. It will coexist with all the other vehicles on the road. Three-wheelers contribute to the last-mile distribution and are the cheapest form of transportation.

AJD: Any innovation still possible in the basic three-wheeler as we go forward from here?

RC: Absolutely, the key to future success is innovation and creativity. It’s about how to design and develop something different from what you have today or how to meet the expectations of a consumer who would feel different, unique and elated.

AJD: So is Piaggio in India progressing on that road of innovative, distinctive stuff which we speak about?

RC: Very much so. Piaggio cannot be far behind. We are the leaders, we created the market, we own the market and we are growing the market. Therefore, we cannot stand behind or forget about future innovation and development. That will carry on.

AJD: With the new CAFÉ (Corporate Average Fuel Economy) regulations coming in, how will small powerplants like yours become compliant with those sort of regulations? We will need to have a sea change in lot of affordable technology to make that, right?

RC: As far as emission regulations are concerned, we are already meeting BSIII norms and BSIV is on the corner and we are almost equipped to make that happen. We still have 5 to 10 years to go for BSV and BSVI and as we go ahead technology is going to be made available and created. There will not be a situation where we’ll have to withdraw from the market just because of emission norms. Emission norms are there to remain just as vehicle norms are.

AJD: Now let’s turn to the far more pleasurable aspect of two wheelers. Stefan you’ve had a major reinventing of mind as far as style consciousness of your products is concerned. How do you see style pervading the senses in the two-wheeler segment especially among scooters in India?

Stefano Pelle: Well, I think the Indian youth is very sensitive to style. And as you know, Vespa is the epitome of Italian style. In fact, if there is one word that comes to my mind when I talk about Vespa, it is style. We are famous for the nice and trendy lines of Vespa which on one side is classic but on the other, modern and innovative. I don’t know if you are aware but we have gone to the extent of tying up with possibly the biggest name in Italian fashion, Georgio Armani, and we came out with a version of the Vespa 946 called the Georgio Armani 946 which really is a piece of art and fashion together.

AJD: I hope it doesn’t cost a bomb?

SP: Oh it does but that’s by design. So no doubt there will be more and more premium and style in the scooter segment, which by the way is growing the most and with a scooter like Vespa, we are bang on that trend.

AJD: Are you going to have more additions in your portfolio as far as scooters are concerned because right now you are just a 2-3 model portfolio so you need some more critical elements to be present in the showroom.

SP: That’s correct, that’s why we have (recently) presented to the press a new model of Vespa that’s called VXL and SXL and we presented the first 150cc scooter which is ‘the’ innovation that we have today. Just as in 2012 we had come with a 125cc scooter, while the major part of the market was still focused on 110cc scooters, today we have come up with a 150cc scooter…

AJD: You are going back to your roots actually…

SP: Exactly! But innovation and power have become particularly important for the youth today.

AJD: Since you mention power, I must get on to superbikes and you have such a phenomenal portfolio of superbikes. How come you have never concentrated your efforts to make this into a viable selling proposition to so many guys who feel deprived because of this?

SP: That’s correct but we are concentrating on Vespa for now. We will also have some other scooters. The bike will come but we want to bring it the moment we have the right pricing otherwise it doesn’t make sense to sell superbikes at high prices. Today, the superbike segment is still small and growing. So once we can have the right pricing, we’ll start concentrating on bringing superbikes.

AJD: Going forward, how do you see technology directing the way you make scooters for a country like India where you want everything at the lowest possible price?

SP: Well, technology does help in that in the sense that there is also true value engineering. You apply technology also to reduce the cost at times and to improve performances. So there’s no doubt that counts quite a bit in order to have the right vehicle at the right price. And of course, we need to work in the right direction.