It has developed an all-new engine with LPG and CNG options for its new three-wheeler vehicle being manufactured at its Baramati plant near Pune. The vehicle is scheduled for launch in the first half of next year.
“This is the first time that we are foraying into the alternative fuel segment. There is a huge potential in this area,” said Ravi Chopra, CMD of Piaggio Vehicles.
Piaggio did not divulge investment details relating to the new vehicle and engine development. The company, however, said the vehicle is part of its ongoing development plans.
Currently, only Bajaj Auto offers CNG and LPG options for its three-wheelers. Industry observers said the market for three-wheelers powered by alternative fuels is around 2 lakh units. Piaggio is targeting to sell around 2 lakh units of all types of its three-wheelers in 2012, up from 1.85 lakh units in 2011.