Piaggio Vespa to set-up facility in Maharashtra

The Italian brand Piaggio is planning to re-enter in Indian scooter business; this time the company is coming with a new Vespa with 125cc engine displacement. The name of new scooter is Piaggio Vespa LX 125. The company is launching new facility in Baramati, Maharashtra with the investment of $38 million. The new facility will be launched in year of 2012.

Already, Piaggio is doing well in three wheeler market and now ready to re-enter in two wheeler segment. Piaggio is a giant vehicle manufactures in India before some time it's scooter was very famous. It's scooter was coming with LML but due to some reasons both the companies went apart hence the production was stopped.

India is the world's second largest two wheeler market after China. And all the two wheeler makers are ready to test the soil with their first rate vehicles. While Piaggio has planned to re-start production of scooters by the end of 2012. The company has targeted to produce 150000 units annually from 2012.

If the Paggio Vespa LX 125 might launched in the market, it will be major competitor of Honda Activa, Mahindra Duro, Rodeo and Suzuki Access which are the popular scooters in India because it will come with a 125cc, 4 stroke CVT engine that produces a peak power of 10.7 BHP and top torque of 9.6 Nm.