Piaggio opens new production facility in Indonesia

Piaggio has opened a new production facility in the capital city of Indonesia, Jakarta, as it tries to strengthen its presence in Asia.

Piaggio Indonesian production facility opening.

Piaggio Group has opened a new production facility in Indonesia, which it hopes will strengthen its presence in the Asian region. 

The new production facility opened by Piaggio is located in Jakarta, the capital city of Indonesia. It is built on a 55,000 square-metre site in the Cikarang district of West Java.

Officially opened on 23 November, the new plant is hoped by Piaggio to give the manufacturer a greater presence in what is one of the largest two-wheeler markets in the world. 

The plant also increases Piaggio’s total manufacturing facilities, globally, to eight, with three in Italy, one in India, one in the US, one in Vietnam, and one in China, in addition to the new Indonesian facility. 

Piaggio’s Asian expansion is also further confirmation, as if it were needed, that Asia is the most important market for all major motorcycle manufacturers, no longer just those who themselves originate in Asia. 

Piaggio Group Chair and CEO, Roberto Colaninno, said: “The new plant in Indonesia sees the Piaggio Group take another stride forward in the strategic international growth program it began more than ten years ago, which has made it one of the industry’s leading players, with a portfolio of unique brands, a proud symbol of Italy around the world.

“Piaggio Group sales on the Indonesian market grew by 61% in 2021 and will continue to rise in the near future.”

In what is a period of transition for the automotive industry as a whole, including for motorcycles and other powered two-wheelers (PTWs), the prominence of motorcycles in Asia is also of encouragement to manufacturers because a market and a culture that already embraces motorcycles will be better prepared for the arrival of a majority-electric industry. 

Further, it is true that the majority of PTWs sold in Asia are low-capacity, and this is further encouragement for motorcycle manufacturers, whose new electrics mostly exist in the 125cc-equivalent category, or other low power segments.

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