Two-wheeler


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 267.9 764.8 310.2 837.8 -13.7% -8.7% (42.4) (73.0)
- of which EMEA 253.8 690.7 299.9 802.4 -15.4% -13.9% (46.1) (111.7)
  (of which Italy) 68.2 193.3 85.1 249.1 -19.9% -22.4% (16.9) (55.8)
- of which America 14.1 74.1 10.3 35.4 36.4% 109.2% 3.8 38.7
 
India 25.7 17.3 25.7 17.3
Asia Pacific 2W 112.6 211.1 104.8 187.5 7.5% 12.6% 7.8 23.6
Total 406.1 993.3 415.0 1,025.3 -2.1% -3.1% (8.9) (32.1)
 
Scooters 374.7 704.1 376.7 715.5 -0.5% -1.6% (2.0) (11.5)
Motorcycles 31.4 137.1 38.3 155.5 -17.9% -11.8% (6.9) (18.4)
Spare parts and Accessories 128.7 135.5 -5.0% (6.8)
Other 23.4 18.8 24.2% 4.6
Total 406.1 993.3 415.0 1,025.3 -2.1% -3.1% (8.9) (32.1)
 

Revenues of Two-wheeler vehicles

Revenues of Two-wheeler vehicles

 

The Two-wheeler business mainly comprises two product segments: scooters and motorcycles, in addition to the related spare parts and accessories business, the sale of engines to third parties, involvement in main two-wheeler sports championships and technical service.

The world two-wheeler market comprises two macro areas, which clearly differ in terms of characteristics and scale of demand. economically advanced countries (Europe, United States, Japan) and emerging nations (Asia Pacific, China, India, Latin America).

In the first macro area, which is a minority segment in terms of volumes, the Piaggio Group has a historical presence, with scooters meeting the need for mobility in urban areas and motorcycles for recreational purposes.

In the second macro area, which in terms of sales, accounts for most of the world market and is the Group's target for expanding operations, two-wheeler vehicles are the primary mode of transport.

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Market positioning

The Piaggio Group retained its leadership position on the European market in 2012, retaining the same market share as 2011, i.e. 19.8%, thanks to consolidation of its position in the scooter segment (a 27.9% share, +0.3pp vs 2011), as well as the registration of vehicles for the Poste Italiane contract.

With production at its own site in Vinh Phuc, the Group also consolidated its position in the premium end of the market in Vietnam, with successful sales of its Vespa and Liberty models, and laid the foundations for future growth in other Asian countries, by forging business relations with local importers.

The Group retained its strong position on the North American scooter market, where it has consolidated its leadership with a market share of just under 30%, and where it is committed to increasing its profile in the motorcycle segment, through the Aprilia and Moto Guzzi brands.

Brands and products

The Piaggio Group operates on the two-wheeler market with a portfolio of 7 brands that have enabled it to establish and consolidate a leadership position in Europe: Piaggio, Vespa, Gilera, Aprilia, Scarabeo, Moto Guzzi and Derbi.

The brands offer a complementary product assortment, so that the Group can supply the market with a fully comprehensive range to target the needs of different customer groups.  

Engines for Piaggio, Vespa, Gilera, Derbi, Scarabeo and Moto Guzzi brands are designed and manufactured by the company. For Aprilia, the Group manufacture engines for the scooter segment, the 450cc and 550cc engines for off road models, the V-twin 750cc and the V-four 1,000cc.

In 2012, the Piaggio Group was absolute market leader, thanks to the introduction of vehicles with a style and content placing them at the top of their segments.  

Piaggio With a wide range of models covering all main scooter segments, Piaggio is one of Europe's and the world's leading brands. The huge success of Piaggio has been built up around the ease of use, design and outstanding functionality of its products.
In 2012, Piaggio made a return to the maxi scooter GT segment, with the X10, setting the standard for style, comfort, safety and innovation and featuring 3 engine sizes - 125, 350 and 500cc - for a better positioning on the most extensive and competitive segment of the market. In particular, the X10 sets the benchmark for safety, and is unique in the segment, with three channel ABS and ASR traction control system. Plus the finishes, comfort and load capacity make the X10 a cut above the rest of the competition.
The new Piaggio Fly was unveiled in summer 2012. Designed and built for the needs and desires of a wide range of users, the New Fly is the most up-to-date successor of Piaggio's great tradition as Europe's top manufacturer of scooters and leader in research into easy, stylish mobility solutions.
The Piaggio Fly is Piaggio's global scooter, designed in association with European and Asian research centres and conceived to meet the needs of the most discerning customers worldwide.
The New Fly combines ease of use, all the style of Italian design plus the comfort, protection and safety of a bigger sized scooter.
Marketed with 50 4-stroke and 125 3-valve engines, the Piaggio Fly delivers an outstanding performance, plus low consumption and superb practicality with a flat stand, the seat which is just 760 mm high, a capacious underseat compartment and 12” wheels for the utmost safety on any surface.

Vespa The Vespa is the Piaggio Group's most well known brand worldwide, synonymous with style and elegance. The Vespa range has always featured models that have all the distinctive heritage of the brand combined with a unique design and steel body.
In January, the Vespa brand was presented to the Indian market at the Auto Expo show in Delhi, Asia's biggest motor show and a leading international showcase for the industry, with the launch of the LX 125 model.
As regards the Vespa range worldwide, the new Vespa LX and S models with new 3 valve engines were unveiled in June. The new 125cc and 150cc engines represent the state of the art in terms of technology and efficiency and compared to previous-generation models, boast a 30% reduction in consumption and CO2 emissions and a mileage of 55 Km/litre at a constant speed of 50 km/h.
The Vespa 946, inspired by the MP6 prototype, the idea behind the most famous scooter in the world which came into being sixty-six years ago, made its début at EICMA. The new Vespa 946 stands out for its futuristic style and exclusive construction solutions. The 946 is the first Vespa with ASR and ABS as standard. The new 125 4T 3V engine boasts an outstanding performance, a record fuel consumption (up to 55 km/l), and low CO2 emissions (- 30%). It will go on the market in early 2013.

Gilera  The Gilera brand features models in both the scooter and motorcycle segments. The brand came into being in 1909 and was acquired by the Piaggio Group in 1969. Gilera is known for its successes in racing, winning six world championship manufacturer's titles and eight world championship rider's titles. Gilera is a brand designed for a young, vibrant market and dynamic motorcyclists.

Derbi  The Derbi brand features a range of scooters from 50cc to 300cc and a range of motorcycles from 50cc to 125cc. Its customer target is young, in the 14-17 years' age group, making it one of the biggest manufacturers in the 50cc segment. The brand has won 21 world titles, gaining a leadership position in Spain and on the 50cc and 125cc motorcycle market.

Aprilia The Aprilia brand includes a range of scooters from 50cc to 850cc and a range of motorcycles from 50cc to 1200cc. The brand is synonymous worldwide with a sporting style thanks to its huge number of wins in leading championships, the outstanding performance of its products, their innovation and cutting-edge design.

The SRV 850 is Aprilia's new maxi twin cylinder model. The 76 horsepower V2 engine makes it the top-performing scooter on the market, offering all the riding experience of an Aprilia product. A superb performance and outstanding safety: The Aprilia SRV 850 also boasts a technological leadership position, with a unique-in-class ABS and a sophisticated traction control system adjustable on 2 levels, for an even safer and more pleasurable riding experience.
The My12 Dorsoduro 1200 offers a new riding, performance and design content. In particular, the model features even better handling, thanks to lighter rims that reduce inertia and enhance the riding experience, plus an optimal performance from an engine already at the top of its field, thanks to enhanced electronics and safety features, harnessing all the power of a recent SBK.

Just one motorcycle for many uses: this is the concept behind the Aprilia Caponord 1200. The new Aprilia road enduro bike introduces ADD - the state-of-the-art semiactive suspension system that can automatically adjust calibration to the type of route conditions, road surface and driving style. The multi-map Ride by Wire accelerator, three-level adjustable traction control and two-channel ABS (both opt-out) embody a suite of electronic controls unique worldwide, as they have been developed by Aprilia from its experience in racing. The 90° V twin cylinder engineer is a technological gem, capable of delivering a maximum power of 128 horsepower at 8,500 rpm and above all a maximum torque of 11.8 kgm at 6,500 rpm. Unveiled at the Milan EICMA show, the motorcycle will go on sale in early 2013.  

Scarabeo  The Scarabeo brand features a wide range of scooters from 50cc to 500cc, and is the Group's premium brand, along with the Vespa. The Scarabeo brand was launched by Aprilia in 1993, and is the first brand to have introduced high-wheeled scooters in Europe.

Moto Guzzi  At the end of November 2012, Moto Guzzi launched the California 1400 Touring on the market, redefining the concept of luxury motorcycles and continuing the history of this model, which began in 1970 when the Moto Guzzi V7 Police was selected for the Los Angeles Police Department's fleet, after some very rigorous testing. Designing the successor of the most famous Moto Guzzi in the world meant tackling a huge technological and financial challenge, to replicate a new standard-setter, as was the case in the 1970's, and state-of the-art two-wheeler technology. The exclusive and impressive new motorcycle represents the best of a brand made in Italy.

The distribution network

EMEA

In the EMEA area (Europe, the Middle East, Africa) the Piaggio Group operates directly in main European countries and through importers on other markets. In December 2012, the Group's sales network comprised more than 1,760 dealers. More than 3,450 agreements to market the Group's brands are managed by partners, of which 36% are sole agency agreements, where the partner only sells the Group's brand(s), and no products of other competitors. The percentage of sole agents went up in 2012 (+1%).

At present, the Piaggio Group is active in 86 countries in the EMEA area and in 2012 it further consolidated its sales network, appointing 70 new business partners, and expanding to some countries in Eurasia.

In 2012, measures concerning the Group's distribution structure took into account market changes in the area, and focussed on achieving a greater qualitative/quantitative balance. Contractual sales and after-sales standards in agency agreements regulating network relationships were also revised in 2012. These standards are driven by improving end customer experience during product purchasing and customer and after-sales service.

Distribution-related choices are based on two strategies:

1. Consolidating local coverage, through a quality-based selection of the network, with the objective of increasing the weight and retention of exclusive Group dealers.

2. Empowering the distribution network, by improving the economic and financial performance of dealers, raising quality standards for end customers and developing services and tools to support the network.

Americas

In the Americas, the Piaggio Group is directly present in the United States and Canada, while in Latin America it operates through a network of importers. At the end of 2012, the Group had over 360 partners in the Americas, of which 290 in the United States, 40 in Canada and a network of 26 importers in Central and South America.
In 2012, measures continued to strengthen the sales network in order to further support the Group's objectives for growth. Distribution-related actions in the United States aimed to consolidate the sales network by identifying new partners that can fully support the commercial penetration of the Group's brands. The process to expand the sales network aims for a greater impact of the motorcycle segment - a market which is particularly attractive in terms of volumes and growth trends, and consolidated results in the scooter segment. Besides developing the dealer network in 2012, agency agreements were revised in order to improve relations with dealers and the quality of end customer service. After its reorganisation in the last few years, the sales network in Canada switched over to the direct model format and distribution logistics used in the United States.
In Latin America, the Piaggio Group continued to expand its distribution network, and sales operations began in three new areas in 2012, in the Turks and Caicos, Peru and Ecuador, thanks to business agreements entered into with local importers.

Pacific Asia

In the Asia Pacific Area, the Piaggio Group has a direct commercial presence in Vietnam, Indonesia, and - for the Aprilia brand only - in Japan. On other markets in this area, it operates through importers.
In line with the Group's strategic objectives, which plan to expand operations in the region, the distribution network is being built up.
In Vietnam, the Group increased its importers from 4 in 2008 (when a different business model was adopted) to more than 40 dealers in 2012, and more than 90 sales outlets. The Group has aimed and is aiming to develop its network in quantitative terms, by stepping up its presence in smaller areas of the country, and in qualitative terms, with a particular focus on corporate identity.
In Japan, the Group directly manages the Aprilia network and operates through importers and dealers for other brands. In total, the distribution network in the country has 200 sales outlets.
The Group is also present in Malaysia, Taiwan, Thailand, Korea, Hong Kong, Singapore, the Philippines, China, Australia and New Zealand through importers.    

India

Piaggio Vehicles Private Limited had 63 dealers in India as of 31 December 2012, with plans to increase sales outlets in 2013. At present, the network covers the main areas of the entire country.

Comments on main results and significant events of the sector

During 2012, the Piaggio Group sold a total of 406,100 units in the two-wheeler segment, worldwide, accounting for a net turnover equal to approximately 993.3 million euro (- 3.1%), including spare parts and accessories (128.7 million euro, - 5.0%). In 2012, the Piaggio Group reconfirmed its leadership position on the European scooter market.
As explained in the previous paragraphs, the Piaggio Group's performance in 2012 was highly penalised by the drop in demand on the European market. This downturn concerned both the scooter and motorcycle segments.
On the other hand, growth in the Asian area was strong compared to the previous period, with sales and turnover increasing by 7.5% and 12.6% respectively, due to an improved production capacity at the Vietnam site.
In the second quarter of 2012, the Vespa went on sale in India. 25,700 units were sold during the year.

Investments

Investments mainly targeted the following areas:

  • Development of the new spare parts warehouse at Pontedera.
  • Completion of the Vespa plant in India
  • Development of new products and face lifts of existing products.
  • Improvements in and modernisation of current production capacity.
  • Implementation of new IT tools

As regards investments for Piaggio Group products in particular, significant resources were dedicated to some brands and/or products which are key to the Group's development. Main investments for European and Asian production sites (Vietnam and India), addressed the following areas:

  • new Vespa 946 and New Vespa LX models;
  • new Piaggio X10 and Moto Guzzi California vehicles;
  • new Lem and 1,400 cc engines.

Industrial investments were also made, targeting safety, quality and the productivity of production processes.

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