Italy's moped giant Piaggio to buy auto parts from India
Psst: Where it says "carburetors ", read OCP fuel systems. Carbs are no longer legal in Europe. Sat Nov 29, 8:49 AM ET
NEW DELHI (AFP) - Italian moped giant Piaggio will buy auto parts worth over 10 million euros (12 million dollars) a year from India for a new model it plans to launch in Europe, the company chief said.
Rocco Sabelli, Piaggio's chief executive, told a EU-India business meeting that European firms could become more cost-effective by sourcing auto components from India.
"Component manufacturing in India, in our experience, is 45 percent more cost-effective than in Europe, making the final product much more competitive," said Sabelli.
"India is on the road to becoming a production hub for European brands. We plan to source components from India worth over 10 million euros, including carburetors and cylinders for our new quadracycle which will be launched in Europe in 2004."
Piaggio is Europe's leading manufacturer of small and medium-engined two-wheelers, but has a debt burden estimated at 575 million euros (660 million dollars).
It has an Indian unit, Piaggio Vehicles Pvt Ltd, which makes three- wheeled transport and passenger vehicles at a plant in the western Indian state of Maharashtra.
Meanwhile, Italian Deputy Foreign Minister Margherita Boniver, who inaugurated an Indo-Italian car design exhibition called "Shape Mission", said both countries complimented each others' strengths.
"Our companies look at India not only as a potential export market but also as an ideal location for joint ventures," said Boniver.
India and Italy signed a pact on Friday to cement ties in science and technology.
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