As a long-time scootering enthusiast, I‘ve been eagerly awaiting the return of the legendary Italian brand Lambretta to the Indian markets. Lambretta enjoys a cult status in India, having sold over 2 million models between the 1950s and 1970s until it closed down. Now with new ownership and strategic investments, Lambretta aims to reclaim its lost glory in its most precious market. I analyzed Lambretta‘s new product portfolio and plans to assess their growth potential. Here‘s my in-depth take as a Lambretta loyalist!
Brief History: The Rise, Fall and Rebirth of Lambretta
Let me start with some context on this iconic brand. Founded right after World War 2 in 1947 in Milan, Italy, Lambretta became the second-largest scooter brand behind rival Vespa. Its history in India kicked off in the early 1950s as one of the aspirational mobility solutions for the middle class. By the late 60s, Lambretta was selling over 90,000 scooters every year in India!
However, as a result of labor issues and increased competition, Lambretta‘s parent company Innocenti went bankrupt in 1972. While Vespa survived thanks to new owners Piaggio, Lambretta had reached a dead-end in most markets. But here‘s where the India story takes a unique turn!
Given Lambretta‘s massive popularity here, the Indian government continued its production under license for domestic demand. Parts manufacturers mushroomed across India to keep existing Lambretta scooters running. After liberalization in the 90s, Lambretta tried staging a comeback via exports but couldn‘t sustain volumes.
Then in 2017, Swiss investment group Infinity Mobility acquired rights to the Lambretta brand name and remaining assets. This year, they found Indian partners to finally relaunch Lambretta in its most promising market through 3 all-new scooter models. I‘ll be reviewing these firsthand soon, but on paper they seem to have cracked the right product-market fit.
Technical Specifications – How the new Lambrettas size up
Lambretta‘s new generation scooters for India span 3 model lines:
V Special Edition:
- 125cc Eco-friendly engine
- Max power: 9 bhp @ 7,250 rpm
- Max torque: 9.2 Nm @ 6,250 rpm
- Mileage: 55 kmpl
- 7-liter fuel tank capacity
- Electric start with kick backup
- Combi brakes, Tubeless tyres
- Spring loaded hydraulic type suspension
- Available colors: Matt Blue, Matt Black
- Price: INR 90,000
X Series:
- 275cc engine
- Water cooled, fuel injected
- Max power: 18 bhp @ 7,250 rpm
- Max torque: 25 Nm @ 5,750 rpm
- Mileage: 45 kmpl
- Telescopic Hydraulic Shock Absorbers
- 10-inch alloy wheels
- Digital console with Bluetooth
- Price range: INR 110,000 to 130,000
G Special:
- 325cc engine
- Water cooled, fuel injected
- Max power: 30 bhp @ 9,250 rpm
- Max torque: 32.5 Nm @ 7,750 rpm
- 6-speed transmission with external gear selector
- 12-liter fuel tank
- Twin Disc brakes, 140mm tyre rear
- LCD digital console with trip meter
- Price: INR 175,000
Compared to market leader Honda Activa, the new Lambrettas are certainly more powerful with their larger displacement engines. The build quality seems appreciably better judging by features like alloy wheels, front telescopic forks etc. Stylish Italian design is evident across the models in my opinion. Prices are definitely on the steeper side, hence Lambretta is positioning itself as a lifestyle brand versus affordable transportation.
Now let‘s take a look at how big an impact Lambretta can make in India this time.
Market Outlook – Where do the numbers add up?
India‘s scooter market has grown tremendously to cross 7 million units in annual volume. Back in the 70s and 80s, Lambretta was moving over 90,000 scooters in India annually. As a percentage of total sales, that would amount to 8-10% segment share today to match those glory days!
Category leader is Hero Motocorp with its blockbuster Hero Pleasure and Maestro models commanding 29% share. Honda has Activa driving 26% share. TVS, Suzuki and Yamaha make up the rest of the top 5.
So realistically, can an uber-premium player like Lambretta actually expand India‘s scooter market further and carve out 5-7% share over time? Here‘s my data-driven analysis:
Lambretta is not competing in the budget 100-125cc mass segment at all. India sold around 3 million 125cc scooters last year, constituting over 40% volumes. Lambretta‘s entry model itself is 2-3 times more expensive than this average price point of INR 55,000.
However in the 150cc+ segment (3.5 million units sold annually), where average selling prices hover around the INR 90,000 mark, Lambretta holds tremendous appeal for upgraders. This includes 20-somethings upgrading from their starter scooter to a fast, stylish ride.
Given its positioning on power and looks, I estimate Lambretta‘s best case annual volumes at around 250,000 units over the next 4-5 years. On a base of 5 million premium 150cc+ scooters in 2025, this would represent a very impressive 5% market share!
Beyond sheer numbers, Lambretta generates significant brand cachet that unlocks peripherals, accessories and merchandise revenues over time a la Harley Davidson. But distribution and customer experience will play crucial roles in turning potential into profits.
Channel and Ownership Strategy – What‘s Lambretta‘s plan in India?
Lambretta has committed $50 million towards setting up domestic manufacturing and building a retail footprint across India‘s top 20 cities.
Reports suggest Lambretta has shortlisted locations around Delhi, Hyderabad and Chennai for possible factory sites for localized production. This allows the freedom to customize bikes for Indian conditions, while avoiding import duties.
For distribution, Lambretta aims for 60 company-owned showrooms supplemented by 100 dealer outlets by 2025. The target is to establish 150-200 total touchpoints in Northern, Western and Southern India within 3 years. Parts availability has been planned for 300+ authorized service centers.
Dealer visibility and test rides will be critical to get the mid-premium buyer base to pay a 25% price premium over comparative Honda, Hero and TVS models. But early reviews praise the new Lambrettas for quality and riding feel. I remain optimistic about the brand‘s equity ultimately overcoming sticker price barriers.
Owning an Italian legend like a Lambretta has been an unmatched feeling for generations of Indians like myself. I for one eagerly await taking the latest 2023 models for my own special spin soon! This promises to be the start of another golden inning for the brand locally. As the quintessential Lambretta loyalist, I assure you these magnificent machines will stand out anywhere when you take them out for ride. Welcome back Lambretta!
