Commercial Vehicles


 
2011   2010   Change Change
  Volumes Sell-in (units/000) Turnover (million euro) Volumes Sell-in (units/000) Turnover (million euro) Volumes Turnover Volumes Turnover
                 
EMEA and Americas 13.3 96.1 13.8 108.4 -3.7% -11.4% (0.5) (12.3)
- (of which Italy) 7.6 60.3 8.4 70.3 -10.4% -14.3% (0.9) (10.1)
- (of which the Americas) 1.1 2.0 0.4 1.2 146.6% 65.0% 0.6 0.8
India 225.0 395.0 219.6 388.9 2.5% 1.6% 5.4 6.1
Total 238.3
491.1
233.4
497.3
2.1%
-1.2%
4.9
(6.2)
                 
Ape 221.6 370.0 217.7 363.6 1.8% 1.8% 3.9 6.4
Porter 4.4 44.6 5.2 55.6 -16.0% -19.8% (0.8) (11.0)
Quargo 4.2 17.8 9.0 33.2 -53.9% -46.3% (4.9) (15.4)
Mini Truk 8.1 15.9 1.5 3.1 448.6% 409.2% 6.6 12.8
Spare parts and Accessories   42.8   41.7   2.7%   1.1
Total
238.3 491.1
233.4
497.3
2.1%
-1.2%
4.9
(6.2)

Revenues of Commercial vehicles

Revenues of Commercial vehicles

The Commercial Vehicles business includes three- and four-wheelers with a maximum mass below 3.5 tons (category N1 in Europe) designed for commercial and private use, and related spare parts and accessories.

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Market positioning

The Piaggio Group operates in Europe and India on the light commercial vehicles market, with vehicles designed for short range mobility in urban areas (European urban centres) and suburban areas (the product range for India).

The Group distributes its products mainly in Italy (which accounted for 57% of the Group's volumes in Europe in 2011), as well as in Germany (18%), Spain (3%) and France (4%). The Group acts as operator on these markets in a niche segment (urban mobility), thanks to its range of low environmental impact products.

The Group is also present in India, in the passenger vehicle and cargo subsegments of the three-wheeler market, where it currently holds a leadership position, with a market share of 37.1%.

The traditional three-wheeler market in India is flanked by the four-wheeler light commercial vehicles (LCV) market (cargo vehicles for goods transport) where Piaggio Vehicles Private Limited operates with the Apé Truk and - since 2010 - with the Apé Mini.

Brands and products

The Ape is the Group's best-selling brand in the commercial vehicles sector. The Ape is highly regarded because of its outstanding versatility, and is the ideal solution for door-to-door deliveries and short-range mobility requirements.
The Piaggio Group range also includes the compact, robust Porter and Quargo models. The Group now has a modern 1,200cc diesel engine developed and manufactured entirely at its new production site in
Baramati, India.

European range vehicles are currently manufactured at production sites in Pontedera, while the range of vehicles intended for the Indian market is manufactured entirely at the production site in Baramati.

Europe

The Piaggio Group's commercial vehicles are intended for the intracity transport niche market, which typically means an average daily mileage of 40 km.
The product range, comprising the Ape 50, Ape TM, Ape Classic, Ape Calessino, Quargo, Porter and Porter Maxxi, combines low running costs, an excellent specific load capacity and extremely easy handling, for access to areas that normal vehicles cannot reach because of their standard size, particularly in historic town and city centres.
The "star in the range" is the Porter, the light commercial vehicle with engine configurations for the most commonly used fuel options: diesel (D120), petrol (MultiTech) and eco-friendly (EcoSolution): bifuel petrol + GPL (EcoPower), bifuel petrol + methane (GreenPower), zero emission electric (ElectricPower).
The chassis version of the Porter is the ideal starter vehicle for adding increasingly specialised fittings to cater for customer needs. Specialisation is the key to Piaggio's success to reach new niche market segments.
In
2011, in the European product range, the new Diesel Euro 5 engines were launched, and the EcoSolution range was completed with a GreenPower version featuring a petrol + factory-fitted methane system option.
The new fully comprehensive engine range means all customer needs can be met, whether from the private domain or public fleet sector, and new trends targeting alternative fuels can be harnessed (pump price tensions, incentive campaigns).
The Quargo, a heavy four-wheeler, which can be driven from the age of 16 with an A1 type licence completes the range. This model levers important component and production process synergies with the Porter, extending the range to include intracity models designed for users who are traditionally served by the Ape 50 and TM, but need to switch to an equivalent four-wheeler vehicle.
Moreover, in a year in which
Italy celebrated the 150th anniversary of its unification, the Ape 50 150° Anniversario Unità d’Italia, was launched, a special limited edition series to mark this occasion.
Lastly, marketing of the Ape 50 also began in North European countries, thanks to the introduction of a reduced speed version, in line with local regulations.

India

The Piaggio Group started operating on the Indian market in 1999, through Piaggio Vehicles Private Limited, manufacturing two versions of the Apé, the Apé 501 and the Apé 601. With these models, the Group has achieved a considerable level of brand awareness in the last few years and has developed a dealer network throughout India, gaining an excellent reputation for its customer service, quality and style, and immediately obtaining a large share of the market.

In 2010, the Apé City Passenger model was introduced, with petrol, diesel, gas and methane engines. With a 275cc petrol engine version and a 395cc diesel engine version, the Apé City Passenger combines power, comfort and reliability - which are all in demand from the domestic Indian market and main export markets. Its features make it particularly suitable for emerging countries in Africa and South America. In the four-wheeler sector, the Apé Truk Indian range was recently added to, with the Apé Mini. Directly originating from the European range, the Apé Truk line combines an excellent load capacity/vehicle weight ratio, outstanding handling and a compact size. The new Apé Mini in particular has a 441cc diesel engine and a fuel consumption which is low on average, even reaching 29 km/l.

The distribution network

Europe
The Piaggio Group has more than 500 dealers in
Europe. Development of the sales network in Europe has led to 70 dealers opening, to manage the entire product line and this has improved coverage on main European markets. This expansion concerned France, Germany, Benelux and Italy in particular. New importers and distributors also became operative in Turkey, England and Serbia.
Developing and improving on the sales network quality standards has been a major focus, with particular attention paid to the efficiency of the service network, standards of corporate identity, the training of salesmen and technicians and approach to customer care.
On the Italian market, the Group has 140 dealers, 80% of which act as exclusive dealers of Piaggio vehicles. The rest of the network comprises multibrand dealers (cars, commercial vehicles and forklift trucks). The 140 Italian operators manage a sub-network of more than 650 sales outlets and dedicated repair centres, with the aim of providing a top level professional service which is close to end users. In 2011, 65 new Service Points were appointed.

New distribution projects which began in 2010 continued in 2011 in four Latin American countries (Mexico, Ecuador, Colombia and Guatemala) where a continually expanding network operates, currently comprising more than 60 sales outlets.New contacts were made with market and institutional operators in another 6 countries where the Group is not currently present. South America continues to be a strategically important area, where the Group is consolidating initiatives launched in the previous year and approaching new business opportunities, stemming from the diverse mobility needs of emerging markets, through its Indian range, and of more developed markets, through its European range.

India

In India, Piaggio Vehicles Private Limited has 290 dealers, as well as 425 authorised after-sales centres.

Comments on main results and significant events of the sector

In 2011, the Commercial Vehicles business generated a turnover of approximately 491.1 million Euro, including approximately 42.8 million Euro relative to spare parts and accessories, registering an 1.2% decrease over the previous year. The trend for sales was positive, with 238,339 items sold in the year and an increase of 2.1%.

On the European market, the Piaggio Group sold 13,287 units in 2011, generating a net total turnover of approximately 96.1 million Euro, including spare parts and accessories for 19.9 million Euro. The decrease over the previous year, equal to 503 units and to approximately 12.3 million Euro of turnover, was mainly due to the negative trend of the reference segment.

On Latin American markets, the Group continued to develop the projects launched in 2010 in Ecuador, Colombia, Guatemala and Mexico, based on the Indian range Apé. These business development initiatives considerably increased sales volumes in the area, which stood at 1,090 units in 2011, compared to 442 units in the previous year.

On the Indian three-wheeler market, up 4.7% over the previous year, Piaggio Vehicles Private Limited held a 37.1% share. Sales of three-wheeler vehicles went up from 195,970 units in 2010 to 195,111 units in 2011, registering a decrease of 0.4%. Detailed analysis of the market shows that Piaggio Vehicles Private Limited consolidated its role as market leader in the cargo segment. Thanks to the Piaggio Apé 501, above all, and numerous possibilities for customisation, Piaggio Vehicles Private Limited reached a 57% market share (60.1% in 2010). Its market share, although decreasing slightly, also remained steady in the Passenger segment, standing at 32% (34% in 2010). On the four-wheeler market, Piaggio Vehicles Private Limited sales volumes were basically the same as the previous year, with 11,200 units sold. Export performance was particularly significant, with the number of units going up from approximately 14,100 in 2010 to approximately 18,700 in 2011.

Investments

Development activities focussed on India, where investments continued for the development of the diesel engines production site. As regards normal operations, works began to expand the production lines for 3-wheeler vehicles, to meet a growing demand from the market.
Product development activities for the European range included the commercial launch of the new Diesel Euro 5 engines and completion of the EcoSolution range with the GreenPower version (petrol + factory-fitted methane system).