The Piaggio group has announced plans to increase its production in India and launch scooters in to the country`s domestic market, the company has significantly been investing in production facilities in countries such as India, Vietnam and China and expects Asia`s contribution towards it`s total sales market to increase from the 20 per cent at the moment to between 30-35 per cent by 2010 according to Piaggio`s chief executive Roberto Colaninno.

Piaggio`s Indian owned subsidiary has more than trebled its sales from 2003 to 2007 to more than 154,000 units, by the year 2010 the company plans to re-enter the Indian scooter market with investment in a new two wheeled production centre, at present piaggio group manufactures its low priced scooters for the European market at it`s plant`s in China,

The piaggio group believe`s that there will still be a need for affoardable transportation in the scooter market in India for the foreseeable future with belief in technology and affoardable infrastructures, according to Roberto Colaninno.

Piaggio has entered into a new agreement with Greaves Cotton of India for new diesel engines to equip the ape brand of three wheeled vehicles, The company is also set to invest a sum of £48million into a factory that will for see its future requirements worldwide.

PIAGGIO ANNOUNCE SLUMP IN WORLD WIDE SALES

Piaggio have announced a huge slump in sales for the first quarter of this year to march 31st 2008, sales fell by 7.7 per cent to £286.9m, operating profit was down 21 per cent to £27.6m and the net profit for the period fell by 68 per cent to £2.5m.

Overall the group sold 150,600 machines world wide in the first quarter, down by 5.8 per cent, sales in the American and European markets have dropped by 10 per cent, sales fell in Europe by 17 per cent and in the home market in Italy by 7 per cent, this could be attributed to the slump in the financial markets world wide.