Piaggio India launches Porter 700 small CV at Rs 340,000

Under its growth strategy to strengthen its commercial vehicle offerings, both for passenger transport, and for goods transport in the Indian market, Italy’s Piaggio Group today launched the new Piaggio Porter 700. With this new vehicle targeted at the last-mile transportation segment, the Italian manufacturer aims to grow its presence in the four-wheeler commercial vehicle cargo segment.

According to Piaggio Vehicles, the 100 percent subsidiary of the Piaggio Group, the modern and versatile Porter 700 has been developed as a result of continuous interaction between the company and its customers. The 652cc Porter 700 is claimed to be ideal for last-mile deliveries but may also be used for intercity journeys. It is the first of many new entries planned by the Piaggio Group in this segment. It is a 100 percent localised product manufactured in India; the company had said all its products launched in India will have the highest percentage of localisation.

The Porter 700 is priced at Rs 340,000 with maximum power of 14.75hp and 40Nm torque, offering superior pickup and acceleration. Some of its highlights include a payload capacity of 700kg, a long cargo deck of 30 square feet, 5-speed floor-mounted synchromesh gearbox, 218mm ground clearance and superior grade ability (21%). 

Porter 700 enters a competitive segment
The Porter 700 will be competing in the 2T segment which has been witnessing a slowdown since the past four years. In FY2014, sales of the 2T mini-truck segment with sales of 166,974 units dropped by a massive 67 percent from 247,426 units in FY2013. Sales dropped further to 131,455 in FY2015, to 116,560 in FY2016 and saw flat growth in FY2017 with 116,890 units.

Mahindra & Mahindra, with a strong product like the Jeeto, has been able to grab considerable market share from Tata Motors. In FY2017, M&M sold 30,033 units in the segment and has doubled its market share to 25.6 percent in the last two years.

L-R: Massimo Repetto, executive vice-president, 3-4 Wheeler Product Development, Piaggio Group; Diego Graffi, CEO & MD, Piaggio Vehicles; Ravi Chopra, chairman, Piaggio Vehicles; and Hardip Singh Goindi, executive vice-president, Commercial Vehicle Business, Piaggio Vehicles.    

Speaking to Autocar Professional at the product launch today in Mumbai, Ravi Chopra, chairman of Piaggio Vehicles, said: “We are well positioned for the India growth story. The launch of this product speaks about our commitment and reconfirms that we are here to stay. We have a network of 350 dealers and 1,000 touch-points across the country. The slowdown in the small CV segment is temporary; there have been many factors that have affected the growth of economy in turn affecting sales. However, now the economy is poised for the second phase of growth. We are currently leading in the three-wheeler space and our new product will only add to our growth story.”

The introduction of the Goods & Services Tax (GST) has been topic of discussion for all sectors including automotive. “GST is a much-needed welcome move. There may be difficulties initially but in the long run this will help the economy,” commented Chopra.

The sub-one-tonne category will grow at 7-10 percent CAGR and more growth will be achieved when the companies push for it, said Chopra. The company has an installed production capacity of 300,000 three-wheelers and 80,000 four-wheelers at its plant in Baramati, Maharashtra.

Diego Graffi appointed new CEO 
Meanwhile, Diego Graffi has been appointed the CEO of the Indian subsidiary, Piaggio Vehicles. “I am delighted with the appointment of Diego Graffi, a highly competent manager with wide international experience both inside and outside the Group, who has already achieved excellent results in building up our position on India’s domestic market,” said Piaggio Group Chairman and CEO Roberto Colaninno.

“India is a constantly growing region with great potential, where we already offer motorcycles, scooters and commercial vehicles. The new Piaggio Porter 700 is the ideal vehicle for last-mile deliveries and for intercity deliveries, and will help strengthen our leadership in the cargo segment,” added Colaninno.

Diego Graffi holds a degree in mechanical engineering from Padua University and has extensive experience in the automotive sector, having worked with leading international companies before joining the Piaggio Group in 2005. A key figure in the Piaggio Group, he has worked in India for about two years and thanks to his global business vision is making a significant contribution to the Group’s international expansion program.

Graffi’s appointment is part of the plan for the re-organisation and consolidation of the Piaggio Group in Asian markets, which began in April with the appointment of Gianluca Fiume (previously Group VP for the European two-wheeler market) as president and general manager of Piaggio Vietnam, with responsibility for all the markets in South East Asia.

The road ahead
Speaking to Autocar Professional on the road ahead and immediate challenges, Diego Graffi, CEO, Piaggio India, said “The immediate focus will be on holistic growth – volumes, profits, sales. We are looking forward to serving our customers the best of what we have to offer.”

The new Porter 700 will face competition from the well-entrenched Tata Ace as well as the fast-rising entrant Mahindra Jeeto which has managed to grab a good share of the market with its 7-8 variants launched at various price-points. Even though the market seems to be shrinking as buyer preferences move towards 2-tonne-plus small CVs, Piaggio seems to be optimistic about making headway in the market.

Piaggio Vehicles will be banking on the new Porter 700 to draw consumers its way. As per industry sales data from the Society of Indian Automobile Manufacturers (SIAM), the company sold a total of 3,191 small CVs or mini-trucks in 2016-17, down nearly 40 percent year on year (2015-16: 4,583). This saw its market share fall from 1.37 percent to 0.88 percent in the LCV (goods carrier) segment.

Piaggio, which has a strong footing in the three-wheeler market with a 29.53 percent share (24 percent in passenger carriers and nearly 50 percent in goods carriers), will be looking to make inroads into the last-mile transportation market with its four-wheeled Porter 700. Does the new product have what it takes to snatch market share from Mahindra & Mahindra  and Tata Motors? What this space in the coming months.

Photography: Omkar Dhas