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.
