Italian vehicle maker Piaggio on Thursday said it plans to invest 30 million Euro ($38 million) in a new scooter plant and re-introduce the iconic Vespa scooter in the Indian market by early 2012.
"We plan to invest 30 million Euro to set up a manufacturing plant for Vespa scooter brand in India," said Ravi Chopra, chairman of the Piaggio's Indian subsidiary, Piaggio Vehicles Pvt Ltd, on the sidelines of an automobile conference.
"We will launch the Vespa scooter by the end of 2011 or early 2012," he added.
The new manufacturing facility will come up in Baramati, Maharashtra, and have a production capacity of 150,000 units per annum.
The new Vespa will be available with a 125 cc gearless engine.
Vespa had been in India since 1950, when it had a joint venture with the Firodias. Also, the company had tie up with Kanpur-based Lohia Machinery Limited (LML) which broke up in 1999.
Chopra also said the company will launch a light commercial vehicle in the category of 0.5 tonne in the next two-three weeks.