Operating outlook

The 2011-2014 Plan presented on 14 December 2011 will target a major increase in productivity, to generate value for shareholders, customers and employees, levering the Group's consolidated international presence, and to increase competitive product costing in key processes such as purchasing, manufacturing and design.

In terms of business and geographic segments, the Plan sets out a development strategy in keeping with the global economic scenario, and aims for considerable growth on emerging markets and a high rate of development, whilst retaining and consolidating its leadership positions on mature markets.

In particular:

  • as concerns Asia SEA, plans have been made to expand vehicle and engine ranges, to penetrate new market segments with a premium position, finalise entry on the Indonesian market and penetrate new Asian markets, thanks to an increase in the production capacity of Piaggio Vietnam (300,000 units/year compared to the current 140,000 units/year);
  • the Group will also enter the Indian scooter market, which has high annual growth rates, with its premium brand Vespa. Production will start in the first quarter of 2012 at the new site in Baramati which is currently being equipped and will have a production capacity of 150,000 units plus/year;
  • on mature markets, the Group plans to attain a further share of the European scooter segment, which performed brilliantly in 2011, with the Group consolidating its European leadership position, as well as a growth in sales and margins thanks to the Aprilia range and Moto Guzzi brand, that will unveil its first new motorcycle models in 2012.

As regards commercial vehicles, the 2011-2014 Plan targets increased sales and market shares in emerging countries and retaining current positions on the European market, in particular:

  • penetrating new segments of the Indian three-wheeler market, with the new Ape City and its 200cc petrol engine, and increasing shares on the Indian four-wheeler commercial vehicles market, thanks to new products in segments with a higher growth rate;
  • supporting sales on the Indian market through consumer financing;
  • further developing exports to African, Asian and Latin American markets.

In technological terms, the 2011-2014 Plan is strongly geared towards the development of new low environmental impact petrol engines with reduced consumption, an area in which the Group already excels, for the two-wheeler and commercial vehicles segments. As from 2012, the Piaggio Group - alongside the launch of new products, some of which were already unveiled at the 2011 edition of EICMA, the international motorcycle exhibition- will put new generations of highly innovative engines on the market, featuring outstandingly low fuel consumption and pollutant emission levels. Thanks to work in conjunction with world-class research centres and university institutes, the development of vehicles with new generation electric engines and hybrid engines will continue and in fact the Piaggio Group is already at the forefront of hybrid engine technology worldwide.