Piaggio Indonesia poised strongly against Honda’s challenge

PT Piaggio Indonesia, the principal and sole agent of Vespa and Piaggio in Indonesia, is not concerned by PT Astra Honda Motor’s introduction in April of the Honda SH150i as a new premium scooter competitor.

Sales of the Vespa Medley, whose specifications are comparable with the Japanese counterpart, has not declined, even though they are in the same price bracket, said Piaggio Indonesia marketing director Andre Sanyoto.

The Medley is marketed at around Rp 44 million (US$3,320), while the Honda SH150i is priced at Rp 44.9 million. “If they Honda can sell five to 10 units a month, we are seeing at least double-digit sales and have seen positive growth since the Medley’s launch in May 2016,” he said.

Andre believes that Piaggio will not be affected by declining sales in the industry, as it relies on the premium scooter segment. It will introduce at least two more premium scooters this year, including the Vespa 946 (RED).

”We are sticking to the premium segment, with an audience who considers not only the functionality of our product, but also their emotional attachment to it,” he said. “The 946 (RED) model will be marketed at a similar price as the Vespa Armani, at Rp 196 million,” he said, adding that his company had already received orders for the new model from Vespa enthusiasts.

Piaggio Indonesia’s sales is mainly supported by the Primavera and Sprint model, which are marketed at Rp 32.8 million and Rp 34.8 million respectively, and contributed 70 percent of total Vespa sales in Indonesia.