KUALA LUMPUR, Tues. – The NAZA Group of Companies recorded a significant milestone in its motorcycle business when it signed a Distributorship Agreement with Piaggio to become the exclusive distributor for four brands under the Italian motorcycle group.

This elevates NAZA’s position in Malaysia as being the only conglomerate with that many Italian brands under one roof, having already successfully handled other Italian luxury brands such as Ducati, Ferrari and Maserati.

The signing was concluded by NAZA Group of companies’ Joint Group Executive Chairman Dato’ Hj SM Faisal Tan Sri SM Nasimuddin and Piaggio’s Managing Director for Asia Pasific Region, Mark Franklin.

The signing ceremony was witnessed by Ministry of International Trade and Industry Deputy Minister Dato’ Mukhriz Tun Mahathir, Commercial Affairs Attache and italian Embassy Mr Fabrizio Vergamini.

Under the terms of the agreements, NAZA will distribute the Piaggio, Aprilia, Gilera and Vespa brands for the Malaysian market. NAZA also will have the option later to distribute the other three brands of producers under Piaggio Group, namey Moto Guzzi, Scarabero and Derbi.

NAZA will invest some RM6 million for the distributorship, which would include an exclusive retail showroom for the brands, including after-sales facilities. The products will also will be distributed under the NAZA World of Bikes umbrella.

There will be a comprehensive range of products that will be distributed under the 4 brands.

Besides motorcycles and scooters, the company would also distribute accessories and general merchandise for all brands, in an effort to extend the lifestyle of these bikes to Malaysians, and offering them a wide choice from NAZA’s stable of brands.

With its vast experience in retailing lifestyle motorcycles, the NAZA group of Companies aims to increase sales of these brands, thereby re-positioning the brands as the ‘preferred choice of lifestyle products’ through its existing 250,000 customers.

Dato’ Hj SM Faisal said the move was a significant step for the Group in achieving its goal of providing the widest choices for Malaysians.

“We will offer out full commitment to these four brands to ensure its success in Malaysia under the NAZA Group. Thanks to our vast experience in distributing lifestyle motorcycles and Italian brands, we believe this is a significant step forward and a mutually beneficial move for both NAZA and Piaggio,” he said.

Dato’ Hj SM Faisal added that the market for lifestyle and high engine capacity motorcycles and scooters in 2009 bucked the industry trend.

“The total industry volume in 2009 dropped around 14.5% as compared to 2008. However the lifestyle segment increased approximately 40 percent from 1,800 units to 2500 units in 2009. The segment is expected to further increase in 2010 to 3000 units.”

“There is a huge potential in the lifestyle and high engine capacity motorcycle market segment. The significant growth of the segment gives better opportunity for NAZA to make strong in-roads into the market with the wide choice of models from Piaggio,” added Dato’ Hj SM Faisal.

The NAZA Group of Companies currently hold the distributorship rights for the Ducati brand, in addition to its stable of car brands that includes the Ferrari and Maserati brands.

Dato’ Hj SM Faisal also said that both parties would explore the possibilities of locally assembling at least one of the brands for the ASEAN regions.

“Additionally, we will establish various customer programs including setting up motorcycle clubs for these various brands, and supporting them  to provide the ultimate ownership experience,” he added.