We speak with Mr. Ajay Raghuvanshi, Executive Vice President, 2-Wheeler Domestic Business (ICE) and Mr. Apoorva Saigal, Associate Vice President – 2W Marketing and Corporate Communication, at Piaggio, on their plans for India. We talk about the Aprilia RS 457 and the group’s CBU bikes, the expansion plans to smaller cities, the customer service and after sales experience and how they plan to ensure an issue-free after sales experience to all customers.
The following as told to Karan Ramgopal (evo India).
Ajay and Apoorva: Our Chairman and Managing Director, Mr. Diego Graffi, publicly announced the bike for the first time. He showcased it to enthusiasts, marking the beginning of our journey. Then, in April, the start of sales occurred. We had a good year to prepare for it. As you know, launching a product is just one aspect, but a lot of preparation goes into understanding customer journeys and ensuring satisfaction. It’s an effort because there are many pain points, and it’s impossible to satisfy everyone completely.
About a year ago, we sat down to review every customer touchpoint. This was essential because, frankly, the experience wasn't great. Customers had issues, and the experience didn’t live up to the global standards we should have provided, especially in the Vespa and Aprilia. We were very cautious, reviewing each touchpoint in the customer journey.
Nowadays, 75-80% of searches happen online, so the first touchpoint is often a review or our website. When someone enquires about the RS 457 or a Moto Guzzi, they visit our website, and it needs to be informative for enthusiasts. We reviewed that page and then considered the next step in the customer journey, which is visiting a facility.
Visiting the facility is challenging because, over the last 7-8 years, the time hasn’t been great for Piaggio. Customer satisfaction was also a challenge. We reviewed the physical aspect of each facility. You can’t just dismantle and rebuild a facility overnight because of costs, but inside the touchpoints, it’s crucial. When a customer enters the showroom, the second touchpoint after the website, they should receive a warm welcome in the showroom. This is a basic expectation. We’re not suggesting you jump on customers, but a warm smile, basic courtesies, and providing the information they seek are essential, whether through a catalogue or an introduction by a sales consultant.
Then comes the demonstration, test drive, and explanation of features—what we call the feature and benefit analysis. This journey continues until the delivery certificate is handed over, and, most importantly, after sales. I often say the “honeymoon” period ends after the sale, and the real business begins with aftersales, which determines the brand’s future.
Now, in terms of after sales experience, it’s about the facilities and, more importantly, the people. We need knowledgeable staff that can provide the global experience we promise with the RS 457. We spent a lot of time training and selecting these staff members ourselves, not leaving it to dealers. Everything was carefully planned, from training to diagnostic tools and other touchpoints.
It took us almost a year to prepare and implement this. When the start of sales time came in April, we were ready with 10 Motoplexes. You’ve likely heard of Motoplexes in India; these are our top stores, showcasing our best brands through completely built units (CBUs) imported from abroad, as well as the RS 457, which is manufactured in India.
We now have around 32 dealers in India, and while not all are Motoplexes, they were selectively chosen by us based on the market potential for 300-500cc bikes. For instance, in places like Tirupati and Vizag, where bookings are coming in, these dealers are exclusively selling the RS 457, fully trained and supported by us. We plan to expand to about 55-60 dealerships by the end of the year, but we’re not looking to expand beyond that. We’re aiming for a premium experience and a premium bike, so we’re not looking at significant expansion beyond these 60 points. All these efforts were made to ensure that the bike lives up to the global experience we promise to our customers, with both facilities and well-trained manpower being key.
When discussing the current status of dealerships or service standards, we’re not comparing ourselves to others but rather to ourselves, aiming to elevate our standards. It’s important to understand that the mid-performance segment is still a niche market in India, and we’ve ensured that at every touchpoint in the consumer journey, the customer receives the experience they expect. There will always be gaps in service standards, which are tough to meet in India, but we’ve spent a year focusing on each touchpoint to ensure that everything is in place before moving into the start of sales.
With the RS 457, we also had the opportunity to bring in our entire range of CBUs, which we launched in April, along with introducing our brand ambassador, John Abraham. This led to the growth of Motoplexes, and today we have 10 in operation. When we say things were bad, it was bad compared to what a customer spending ₹4 lakh would expect, not bad compared to someone buying a ₹1.7 lakh product.
As a customer, if you’re spending ₹₹5 lakh on a bike in India, you have high expectations. We began by analysing the standards from a customer’s perspective, then engaged with our dealers and reviewed warranties. We recognised that customers didn’t want their bikes serviced alongside scooters, so we created a dedicated service bay, which was very important. We also introduced specific dealer kits and tools, like an auto-guided diagnostic tool that quickly identifies issues, providing faster and more accurate diagnosis.
We’ve noticed that 99% of customers are in a hurry during the delivery ceremony, eager to take their bike or car and leave. However, this is a critical time for explaining important details, like insurance, roadside assistance (RSA), and legalities. We’ve started giving a detailed delivery certificate explanation, similar to practices in the car industry. We emphasise the importance of understanding everything, from the fuel level to the RSA number, to ensure customers are fully informed before they leave. It’s not just about delivering a bike; it’s about delivering an experience and building a relationship with the customer.
Karan Ramgopal: Regarding dealerships, you mentioned having 10 Motoplexes and about 33 dealerships that are exclusively dealing with the RS 457. Do these Aprilia showrooms exclusively sell RS 457s or scooters also alongside?
Ajay Raghuvanshi: Motoplex is our top-tier store, offering a global experience, closely monitored and managed. These stores sell CBU bikes, RS 457s as well as scooters. Additionally, we have around 32 dealers who may not be Motoplexes but are strategically selected based on market potential.
KR: Building on that, what’s the market interest that you have seen in the RS 457?
AR: In terms of the RS 457’s reception, we currently have around three to three and a half months’ worth of bookings. As declared in the press, we started the start of sales, but we’re still production-constrained due to the global demand from this plant. We expect to meet the Indian market demand more effectively by September or October. For now, we’re holding onto more than three months of bookings. We’ve designed a model where bookings are made online, and dealers are not taking bookings independently. This ensures that customers feel more involved and informed. Unlike other companies, we haven’t opened offline bookings yet. The control is in our hands, and we inform dealers based on the bookings at the end of each month. This ensures a smooth supply and delivery process.
KR: Seeing that there is a lot of interest in the RS 457 in India as a market itself is diversifying quite a bit and demand for these bikes are not only in tier 1 and tier 2 cities. Do you see sense maybe further down the line to start introducing the RS 457 in your other dealerships as well? The one that you'll have in the hundreds. Maybe having the sales of the RS457 and that also so it's available to a wider audience?
AR: India is a vast market, and while demand is growing in tier 2 and tier 3 cities, we are expanding from 32 to 60 dealerships, covering more than 80 per cent of the market segment. We’re not looking at expanding beyond that as we don’t see potential in certain areas. However, we are considering offering doorstep services in the future if needed.
KR: From a financial standpoint do you think it's more feasible for you to have doorstep service where you're going to individual places to get the service done versus just having a dedicated service set up at a dealership that already exists that may not sell an RS-457 but has the facility to service an RS-457?
AR: From a financial standpoint, offering doorstep services may be feasible in certain cases. Still, for now, we’re focusing on expanding our authorised service centres to cater to scooters and potentially the RS 457 in the future. These centres are equipped with the necessary tools and trained manpower to meet our service standards. As for the average service cost, after the first 1,000, 6,000, and 10,000 kms, which are free services, we estimate that customers may spend around ₹2,000 per visit on consumables like oil. We also offer a three-year warranty with the RS 457, which is a first for this segment, further ensuring our commitment to quality. After the 10,000-kilometre service, we recommend servicing the bike every 6,000 kilometres or six months, whichever comes first. This ensures the bike remains in optimal condition, providing a reliable and enjoyable riding experience. We understand that customers want their service to be convenient and hassle-free, which is why we’re focused on ensuring that our service network is robust and reliable. We’ve even provided initial dealer kits (IDKs) to ensure that parts are available from the start, accommodating early customers who may require servicing soon after purchase. In conclusion, we’re confident in the RS 457’s performance and the direction we’re heading in terms of sales and aftersales service. We’ve put a lot of effort into ensuring that customers receive the experience they expect, and we’re continually working to meet and exceed those expectations.