Auto Expo 2014: Vespa is and will remain premium

Ravi Chopra. A seasoned automobile veteran. And, the way he is seated comfortably on the sofa in his meeting room, I can tell he is relaxed and confident, and ready to take on any question I might throw at him. So, I begin with the obvious - the Vespa LX125's steep pricing and the average sales that have resulted because of it.

Chopra is quick and straight forward in his answer. He doesn't want to compete with the run of the mill scooters. He believes there are enough products in that category already. What he'd like is to exploit a niche and that's exactly what the LX125 does. There is a market for premium, lifestyle scooters and that's where he wants to be going forward. He says, "We kickstarted the premium space in scooters and we own that space. Yes, the volumes are not engaging, but slowly and steadily we are bound to have a situation wherein the volumes will increase. We are not a mass market player and we don't intend to be. We know that the country is big enough and there's space for even a premium scooter to grow."

Chopra is also clear his company won't do mainstream, low priced scooters. In fact, he suggests, the Vespa brand will continue to rise up the price spiral. He also believes not selling by the droves means that Vespa has a certain exclusivity to it, which many existing and potential customers appreciate.

He is so confident about Vespa and its pricing that he will launch yet another Vespa early next month. And the new scooter, the S, will be even more expensive than the current LX and VX range. Says Chopra about the S - It is a sporty version of the LX range and it is something people, though limited, will appreciate. Yes, it will be pricier, but then it is a different, better equipped scooter, he adds. 

The S, like the VX will get tubeless tyres and a disc brake upfront. It will also come with a windscreen but its most distinguishing feature will be its rectangular headlamp. It has more practical storage as well compared to the Vespa VX and it will be available in a new orange hue. Chopra doesn't intend stopping there. He will also bring in the Vespa flagship - the 946 - to India this year. The 946, he tells me, is an important addition to the Vespa's Indian line up. "The 946 showcases our capability, our technical ability and our brand's positioning of that being the ultimate in luxury when it comes to scooters. It is also one of the most technologically advanced scooters ever created. It's not like we will sell millions of 946s, no, but it is here to tell the Vespa buyer that this is our strength; this is our technology; this is our confidence."

The most stand-out bit about the hand-built 946 is its design. It's one of those scooters that works equally well as a showpiece in your living room as it does on the road. For on road use, it gets ABS and traction control; digital instrumentation; a monocoque chassis that sits on modern cycle parts and rubber; and a 125cc, single cylinder, fuel injected engine with around 12PS on tap. It will be expensive though, prohibitively so for many, because the 946 will come in via the CBU route and we are looking at an indicative pricing of close to Rs 10 lakh.

Besides the 946, Chopra is excited about another possible launch - the Piaggio Liberty. "We kick started a niche with the Vespa, and we want to do it again with a range of Piaggio scooters." He believes, the large-wheeled scooter - which does not exist in the country yet - could revolutionise the Indian scooter market. The Liberty looks more like a larger step-thru than a scooter, but Chopra insists that it is a scooter, and if its success in the international markets is any indication, a good one at that. 

The Piaggio Liberty comes with both a 125cc and a 150cc single cylinder engine and with a three-valve head and fuel injection. Both these engines are built in India already and should work in Piaggio's advantage if it decides to launch it here. In terms of cycle parts, the Liberty runs regular telescopic forks upfront and relatively longer travel single coil over damper at the rear. It also gets a single disc brake at the front and practical storage options. "We have been doing a very comprehensive research on how the Liberty will be perceived, but I am confident it will work in India," says Chopra. We will complete our evaluations in the next few months and take a decision on whether to launch the brand in India or not, he says.

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He doesn't mention anything about the pricing of the Liberty, but instead jumps back to his current scooter brand - Vespa. He tells me that majority of Vespa customers are such that they eat, live and drink Vespa. And they demand personalisation options and Vespa merchandise, which his company is in the process of scaling up. Currently, Piaggio imports Vespa related accessories and merchandise from Italy, but Chopra envisages demand for personalisation going up and reaching a level wherein it would be justified to actually make this stuff right here in India.

It's time for Chopra to head for another meeting, but before I get up to leave, he reiterates that there's more to the scooter business than just pricing in India. And if there's one thing that Vespa as a brand will continue to concentrate on is being premium. Being cost-effective and a volumes player clearly isn't on Chopra's mind. Yet.