Commercial Vehicles


2012 2011 Change % Change
Volumes Sell-in (units/000) Turnover (millions of euro) Volumes Sell-in (units/000) Turnover (millions of euro) Volumes Turnover Volumes Turnover
 
EMEA and Americas 10.4 72.4 13.3 96.1 -22.0% -24.6% (2.9) (23.7)
- (of which Italy) 4.7 41.9 7.6 60.3 -37.9% -30.5% (2.9) (18.4)
- (of which the Americas) 1.1 2.7 1.1 2.0 -2.7% 33.7% (0.0) 0.7
India 199.0 340.5 225.0 395.0 -11.5% -13.8% (26.0) (54.6)
Total 209.4 412.9 238.3 491.1 -12.1% -15.9% (28.9) (78.2)
 
Ape 201.4 330.8 221.6 370.0 -9.1% -10.6% (20.2) (39.2)
Porter 3.0 31.4 4.4 44.6 -32.8% -29.6% (1.4) (13.2)
Quargo 1.6 7.4 4.2 17.8 -62.1% -58.5% (2.6) (10.4)
Mini Truk 3.4 6.5 8.1 15.9 -57.7% -59.2% (4.7) (9.4)
Spare parts and Accessories 36.8 42.8 -14.0% (6.0)
Total 209.4 412.9 238.3 491.1 -12.1% -15.9% (28.9) (78.2)
 

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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 45% of the Group's volumes in Europe in 2012), as well as in Germany (22%), France (3%) and Spain (2%). 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 34.3%.

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 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.

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.

The 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.

India

In 1999, the Piaggio Group began operating on the Indian market, through Piaggio Vehicles Private Limited, manufacturing two versions of the Apé, the Apé 501 and the Apé 601. Thanks to these models, the Group has achieved a considerable level of brand awareness in recent years, developed a dealer network throughout the country and gained an excellent reputation for customer service, quality and style, obtaining a considerable market share from the outset.

In 2012, sales of models introduced in 2010 and 2011, such as the Apé City Passenger with petrol, diesel, gas and methane engine, and the Apé Mini with a 441cc diesel engine and one of the lowest average fuel consumption figures in its category, were consolidated.

The distribution network

Europe

The Piaggio Group has more than 500 dealers in Europe. Development of the sales network in Europe has led to 45 dealers opening, to manage the entire product line and this has improved coverage on main European markets and offset the abandon of some operators of Piaggio sales network. Network developed concerned Italy, Spain, France, Germany and Benelux in particular. Dealers appointed in 2011 were consolidated, and a new distribution agreement with Denmark and Sweden was entered into, becoming operative in the first few months of 2012.

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, Piaggio Veicoli Commerciali has 110 dealers, 80% of which are exclusive dealers of Piaggio vehicles. The rest of the network comprises multibrand dealers (mainly cars and commercial vehicles). The 110 dealers are the result of a process to streamline the network which got underway in 2012 and has optimised sales efficiency, maximising local coverage and guaranteeing dealer proximity for end customers.

The 110 dealers 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 2012, the process to identify business opportunities on high potential markets such as Latin America and Africa continued. South America continues to be a strategically important area, where the Group is consolidating initiatives launched in 2010 and 2011 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. After the opening of a new dealer in Djibouti, actions were taken to analyse potential and carry out scouting in Africa, planned for 2013.

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 2012, the Commercial Vehicles business generated a turnover of approximately 412.9 million euro, including approximately 36.8 million euro relative to spare parts and accessories, registering an 15.9% decrease over the previous year. 209,400 units were sold in 2012, down 12.1% compared to 2011.

On the EMEA and Americas market, the Piaggio Group sold 10,367 units in 2012, generating a net total turnover of approximately 72.4 million euro, including spare parts and accessories for 16.3 million euro. The 22.0% decrease in units sold is mainly due to the negative trend of the reference market and difficult macro-economic situation affecting main European markets.  

On the Indian three-wheeler market, up 1.2% over the previous year, Piaggio Vehicles Private Limited holds a 34.3% share. Sales of three-wheeler vehicles fell from 195,111 units in 2011 to 182,381 units in 2012, registering a decrease of 7.0%. 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 holds a 52.1% market share (56.5% in 2011). Its market share, although decreasing slightly, also remained steady in the Passenger segment, standing at 30.2% (32.0% in 2011). On the four-wheeler market, Piaggio Vehicles Private Limited sold 4,018 units, holding a marginal share of 1.6%.

Investments

Development focussed on products for the Indian market, with ongoing investments made for the development and industrialisation of new petrol and diesel engines and new three- and four-wheeler vehicles for passenger and goods' transport.

The new 200cc petrol, LPG and methane engine was developed, for the new Apé City three-wheeler, to meet the needs of passenger transport in urban areas.

A new 1,000 twin cylinder aspirated engine was completed for the new Porter 1000, a four-wheeler with a capacity of over 1,000 kg to be sold on the European market starting from early 2013. Besides completing the range for the 0.5 ton capacity segment, the new Porter 600 was developed, which will be fitted with a single cylinder 510cc diesel engine and launched at the beginning of 2013.