New Delhi, Nov 29: Italian auto major Piaggio will source 50 per cent of the components for its soon-to-be-launched Quadricycle for Europe and the total value of parts to be bought from India this year will be ten million Euro. ''India is a very cost-effective base and our company would be saving as much as 35-45 per cent by sourcing components from India,'' Piaggio CEO Rocco Sabelli said during the India-EU business summit here last evening.
The company would also be launching the Quadricycles in India by 2004-end.
''After the European market, these would eventually be launched in India in the one-tonne and below category,'' Sabelli said.
The parts that will be sourced from India include carburettors and cylinders.
''Sourcing from India will gradually go up with time because of the cost-effectiveness and increasing quality of components,'' Ravi Chopra, managing director, Piaggio India, said.
The company would be investing close to Rs 100 crore by 2004 for expansion in India as well as increasing component sourcing.
Bureau Report