2012 Half year financial report

Operating outlook

In an increasingly challenging reference scenario, the Group continued to pursue the objectives of its 2011-2014 Plan, presented on 14 December 2011, in the second half of 2012.

Key aspects of the plan include a strong increase in productivity, to generate value for shareholders, customers and employees, and in terms of business and geographic segments, a development strategy that is in line with the world economic scenario, to achieve considerable growth on emerging markets characterised by a high rate of development, while maintaining and consolidating leadership positions on mature markets.

In particular:

  • in Asia SEA, expansion of the two-wheeler product range and engines, as well as finalisation of entry on the Indonesian market and on new Asian markets, thanks to the increased production capacity of Piaggio Vietnam;
  • entry into the Indian scooter market and its high annual growth rates, with the premium brand Vespa and presentation (26 April 2012) of the model for the Indian domestic market, which went into production in the first quarter of 2012 at the new site in Baramati, officially inaugurated on 28 April 2012;
  • further consolidation of the Group's European leadership position on mature markets, in terms of the global two-wheeler market and in the scooter segment, plus a growth in sales and margins in the motorcycle segment;
  • retention of sales and market shares in India in the commercial vehicles segment, also thanks to the introduction of new three- and four-wheeler products in segments with a higher growth rate) and retention of current positions in emerging countries in Europe and further development of exports to African, Asian and Latin American markets.

From a technological viewpoint, the Piaggio Group is extremely focussed on developing new highly innovative engines with far lower fuel consumption and pollutant emission levels in the two-wheeler and commercial vehicles segments. Thanks to work between the Piaggio Group's R&D Centres in Europe and Asia and world-class university institutes, the development of vehicles with new generation electric engines and hybrid engines will continue and in fact the Piaggio Group is already at the forefront of hybrid engine technology worldwide.

In line with the increasingly global profile of industrial and business operations, the development of an international system of competencies and research in product marketing and style, will be given a major boost, with Group centres in Europe, Asia and the USA bringing together the best designers and marketing experts from all Piaggio Group sites worldwide.