BUSINESS

Piaggio launches Vespa in India in $50 million bid to create luxury scooter market

04/26/2012 04:52 EDT | Updated 06/25/2012 05:12 EDT
MUMBAI, India - Piaggio launched its famous Vespa scooter in India Thursday.

The Italian company hopes to carve out a market for luxury scooters in one of the most cost-conscious markets in the world.

Piaggio is investing $50 million in a new factory, with plans to double capacity to 300,000 vehicles a year by 2013.

The Vespa LX will cost around 66,661 rupees ($1,282) in India, a 40 per cent premium to most scooters, but still the lowest sticker price for a Vespa in the world.

The model sells for about 3,000 euros ($3,960) in Europe.