Commercial Vehicles

1st half of 2013 1st half of 2012 Change % Change
Volumes
Sell in
(units/ 000)
Turnover
(million of euros) 
Volumes
Sell in
(units/ 000)  
Turnover
(million of euros)
Volumes Turnover Volumes Turnover
 
EMEA and Americas 4.5 31.9 6.1 40.9 -26.5% -22.0% (1.6) (9.0)
  (of which Italy) 1.7 16.5 2.8 23.5 -39.8% -29.8% (1.1) (7.0)
  (of wchich Americas) 0.4 0.9 0.8 1.9 -49.2% -50.3% (0.4) (0.9)
 
India 92.1 149.9 92.6 161.3 -0.6% -7.1% (0.6) (11.4)
 
TOTAL 96.5 181.7 98.7 202.2 -2.2% -10.1% (2.2) (20.4)
 
Ape 93.4 145.9 93.7 157.2 -0.3% -7.2% (0.3) (11.3)
Porter 1.2 13.4 1.7 17.3 -26.7% -22.1% (0.5) (3.8)
Quargo 0.3 2.0 0.9 4.4 -62.3% -54.2% (0.6) (2.4)
Mini Truk 1.6 3.3 2.4 4.6 -34.9% -29.2% (0.8) (1.3)
Spare parts and Accessories 0.0 17.1 18.7 -8.5% (1.6)
 
TOTAL 96.5 181.7 98.7 202.2 -2.2% -10.1% (2.2) (20.4)

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.

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 47% of the Group's volumes in Europe in the first half of 2013), as well as in Germany (26%), France (5%) and Spain (3%). 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 53.5 %.

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 operated with the Apé Truk and Apé Mini, that were replaced in the first half of 2013 with the new Porter 600 and Porter 1000.

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 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).
Products include the Quargo, a heavy four-wheeler, which 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

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 the first half of 2013, the Group consolidated sales of recently introduced models, such as the Apé City Passenger with petrol, diesel, gas and natural gas engine. The new Ape City 200, ideal for customers who want a compact vehicle, was introduced during the first half of the year. The vehicle has a new engine developed by Piaggio, for an even better performance that outstrips the competition.
The LTV range was entirely restyled with the introduction of the Porter 600 and Porter 1000, which have replaced the Ape Mini Truk and Ape Truk Plus. The Porter 1000 features the Piaggio BNA engine, type-approved to BS IV, for a lower consumption than competitors in its reference segment (1 ton).

The distribution network  

Europe

The Piaggio Group has more than 500 dealers in Europe. Development of the sales network in Europe has led to 18 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 development concerned Italy, Spain, France, Germany, Benelux and Greece in particular.
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 115 dealers, 80% of which are exclusive dealers of Piaggio vehicles. The rest of the network comprises multibrand dealers (mainly cars and commercial vehicles). The 115 dealers are the result of a process to streamline the network which got underway in 2013 and has optimised sales efficiency, maximising local coverage and guaranteeing dealer proximity for end customers.
The 115 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 2013, 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, 2011 and 2012 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 in Africa to analyse potential and carry out scouting, which will take place this year.

India

In India, Piaggio Vehicles Private Limited has 300 dealers, as well as 400 authorised after-sales centres.

Comments on main results and significant events of the sector   

In the first half of 2013, the Commercial Vehicles business generated a turnover of approximately €181.7 million, including approximately €17.1 million related to spare parts and accessories, registering a 10.1% decrease over the previous year. 96,500 units were sold during the first half of 2013, down 2.2% compared to the same period of 2012.

On the EMEA and Americas market, the Piaggio Group sold 4,500 units in the first half of 2013, generating a net total turnover of approximately € 31.9 million, including spare parts and accessories for € 7.9 million. The 26.5% 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 1.4% over the previous half year, Piaggio Vehicles Private Limited holds a 34.1% share. Sales of Piaggio three-wheeler vehicles went up from 83,187 units in the first half of 2012 to 83,534 units in the same period of 2013, registering an increase 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 holds a 53.5% market share (51.4% in the same period in 2012). Its market share, although decreasing slightly, remained steady in the Passenger segment, at 29.5% (30.1% in the same period of 2012). On the four-wheeler market, Piaggio Vehicles Private Limited sold 1,679 units, holding a marginal share of 1.5%.

Investments  

In addition, investments to develop and industrialise new products for the Indian market continued.