Piaggio India jacks up prices of the Vespa LX125

Earlier this year, Piaggio India dropped prices of the Vespa LX125. The lower price was, in the company's MD Mr Ravi Chopra's own words, on account of "having achieved high levels of productivity in our manufacturing processes and optimisation of systems. We have just passed the cost efficiencies on to our customers and have maximised the value offering. Vespa buyers are now getting cost benefits in the range of Rs 7,000-Rs 8,000." 

For the record, the Piaggio LX125 is 100% localized while the more recently launched VX125 comes with a 95% localization level. Surprisingly, Piaggio India has jacked up prices of the LX125 model, to those levels at which the scooter was initially launched. The Piaggio LX125 is now priced at INR 66,460 ex-showroom Pune. (66,661 ex-showroom Maharashtra was the price at which the Vespa LX125 was initially launched in India) 

It will be interesting to note Piaggio India's account on why it has increased prices of the Vespa LX125 by over 10%, especially at a time when the auto industry, including the two wheeler sector is going through a slowdown. Also, other major automatic scooter makers such as TVS Motors, Honda, Hero MotoCorp, Suzuki and Yamaha haven't increased prices, ruling out an industry specific phenomenon such as increase in input costs, etc.

With that, it seems like Piaggio India is alone in its price hike tactic. While the car industry, especially the luxury segment with heavy import content, has been effecting price hikes due to the depreciating Indian Rupee, Piaggio India shouldn't be affected by this phenomenon given the high amount of localization its scooters come with. So, why else has Piaggio India hiked prices of the Vespa LX125, a scooter model that is already a slow seller?

This is a question that'll be best answered by Piaggio, more so as the official website of the Vespa doesn't list out any additional features on the Vespa LX125.