Here comes competitor to Tata's ACE

Piaggio, Italy just announced its plans to invest Rs. 350-400 Crores in the next 2-3 years to add new facility in Pune to make 4-wheelers.

Piaggio is already a hit in the market with their 3-Wheelers in the Cargo segment. Their Ape is successful since its launch as Piaggio was able to create a clear segment in the Indian auto industry.

However, lately Tata's have dented its market with its state-of-the-art designed ACE four wheeler. ACE offered better tonnage for the hub and spoke model and higher esteem to the owner who now sees himself as the truck owner not a 3-wheeler owner.

But Piaggio's new plans of entering this segment will certainly make this segment highly competitive. Though many others like Mahindras, Force Motors, Bajaj's have announced their plans for this me-too type product, but none is able to dent the market of Tata's.

Piaggio is different from others. It is the well-entrenched player of this segment and hence Tata's should fear them most.