Piaggio And Foton Sign Final Contract For New Range Of LCVs

In September 2017, Piaggio and Foton had signed an important preliminary agreement in Beijing, which would see both the manufacturers work towards the strategic development of products for domestic and international markets. The Chairman and CEO of Piaggio & C. S.p.A., Roberto Colaninno, and the Vice President of Foton Motor Group and President of Foton International, Chang Rui, have signed a final contract for the development and production of a new range of four-wheel light commercial vehicles while the technical annexes will be completed over the next two months.

The main objective of this partnership is the development of a new range of commercial vehicles to enable the Piaggio Group to achieve significant expansion on its relevant market, while simultaneously delivering important costs reductions. The sector's positive growth outlook has been a factor in the creation of a research and production platform to help the Group to strengthen its positioning and expand on the international markets.

Different types of vehicles are planned to be realized in mini pick-up and mini-van models, for transportation of both passengers and cargo, to meet the growing demand for commercial mobility solutions particularly suited to intra-city travel, and equipped with latest-generation eco-friendly engines and state-of-the-art technological features. All the vehicle types will have a payload capacity up to 1.5 tons.

The new range of products will be manufactured in the Piaggio Group's Italian factories, using the existing lines dedicated to the current production. The models will be gradually launched in the next few years starting from 2019.

Now Foton has been eyeing to enter the Indian market for quite a few years, but the changing market dynamics and the strong foothold of established players has been a strong deterrent. However, the tie-up with Piaggio, might help the company expand its footprints especially in a market like India where the former has a lot of experience