Piaggio India could be the next big player in the electric scooter segment as the company is developing battery-powered models, according to a recent report. The company will take about two years to develop the electric scooter and it says it wants to make a business case for its products even after the government subsidies have been withdrawn. At present, Piaggio retails petrol-powered scooters in the country. However, its commercial vehicle arm has already forayed into the electric mobility space with the Ape electric three-wheeler. The company wants to have a sustainable business case for its EV business without subsidies.
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Piaggio India currently retails petrol-powered scooters like the SR 160 and the SXR 160, specifically developed for the domestic market
The report quotes Diego Graffi, CEO and MD, Piaggio India, saying, "We are interested in providing customers with a solution in the two-wheeler space that (makes sense) even beyond the effect of subsidies. It is a matter of fact that the players that have entered recently in this space are gaining volumes on the base of subsidies."
At present, electric vehicles are heavily subsidised in the country, which has helped make them more accessible to customers, especially by reducing the delta over a petrol-powered scooter. The report suggests that the central and state government subsidies help reduce the cost of electric two-wheelers by a healthy 40 per cent.
Furthermore, Graffi was quoted saying that the supplier ecosystem in the country was still unprepared to support the transition to electric mobility on a massive scale. While the technical know-how exists, the manufacturing capacity in the supplier ecosystem is not present.
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Piaggion India CEO & MD Diego Graffi with the Vespa Elettrica showcased at the 2020 Auto Expo
The report further reveals that the electric scooter will be specifically developed for the Indian market. "We just don't want to enter the market for the sake of entering. We will have a powertrain that will be based on our specifications. We do not want to take anything off the shelf. That's why it's taking more time," the report quotes Graffi.
The Indian electric scooter space is currently dominated by new players and start-ups, as opposed to legacy two-wheeler manufacturers. Barring Bajaj Auto and TVS which hold a small portion of the volumes, it's the likes of Hero Electric, Ather Energy, Okinawa, and the likes that have made major strides in shaking up the industry. Then there are the newer players in the form of Ola Electric, Bounce, Simple Energy, among others who promise better range, compatibility, battery swapping tech and more.
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It's unclear at the moment which segment does Piaggio plan to target with its upcoming electric scooter. The model could be priced between Rs. 1-1.5 lakh and is expected to come with connected tech. It will pit it against the Ola S1 Pro, Ather 450X, Bajaj Chetak, TVS iQube and the likes. The upcoming offering from Hero MotoCorp will also be a contender by then.
Source: ETAuto
