The practice of outsourcing production and manufacturing to other parts of the world where labor and equipment are cheaper is nothing new. This is especially true when companies are trying to find more cost effective ways of meeting demand in certain parts of the world. Even the biggest players in the motorcycle industry have been doing this for decades, with the likes of Ducati, KTM, and BMW putting up manufacturing facilities in China, Indonesia, and other Asian countries.
The Piaggio Group, parent company of the likes of Vespa, Aprilia, and Moto Guzzi, too, has production facilities in Asia, namely Vietnam and China. The company is expected to open yet another facility in Asia, this time in Indonesia’s capital Jakarta. Indonesia, similar to India and China, is one of the world’s biggest motorcycle markets. In fact, it’s number three, sitting next to these two other countries. Indonesia sees a total of around five million motorcycles and scooters sold every year. As such, it isn’t really surprising that a company as big and well-established as the Piaggio group wants to cater to the market more efficiently.
The Piaggio Group had a pretty excellent 2021 in the Indonesian market. The company registered a massive 61-percent growth in terms of sales figures. Should everything pan out smoothly, 2022 could be an even better year, as the company now has more than 50 dedicated point-of-sale dealerships and stores spread across Jakarta, Bali, Surabaya, and Jogjakarta. Out of the 50 outlets, four of which are Motoplex showrooms displaying a mixture of bikes from the likes of Aprilia, Moto Guzzi, Vespa, and Piaggio.
The new factory in Jakarta, Indonesia, is projected to occupy a space of around 55,000 square meters. Piaggio hopes to inaugurate it in the second half of 2022. Given the diverse selection of motorcycles specific to the Asian market, expect the smaller bikes in the Piaggio Group’s lineup to be manufactured in the new facility. Two-wheelers such as Vespas, as well Aprilia scooters and small-displacement bikes like the SR GT and SR 160. Once inaugurated, the company’s Jakarta facility will boost production output, and work in tandem with Piaggio's factories in Vin Puch, Vietnam and Foshan, China.