The mass production start-up coincided with the market launch of the Shuni, also held in Foshan and attended, in addition to the senior management of the two groups, by the joint venture's top dealers.

Developed and commissioned for production by the Piaggio Foshan Motorcycle Company in a record 10 months, the Zongshen Piaggio Shuni is a modern 50cc scooter based on the Zip project, one of Piaggio's greatest success stories. The Shuni's four-stroke engine is produced under licence from Piaggio at the Zongshen engine plant in Chongqing, with an annual production capacity of more than 4 million units, and is one of the few engines on the Chinese market that complies with Europe's current emissions standards, Euro 2, which were adopted by China this year.
 

The agreement with the Zongshen Group gives Piaggio a bridgehead for expansion in China (the world's fastest growing market for motorised two-wheel vehicles, with annual demand of more than 17 million units) and south-east Asia. Further opportunities could arise on the three- and four-wheel markets, which in China alone represent an estimated 1.5 million and 800,000 vehicles a year respectively.

At the Shuni scooter launch, Piaggio Group chairman Roberto Colaninno said: "The Piaggio Group is financially sound and its debt is decreasing, in part thanks to its ability to generate cash. If the turnaround continues to gather speed, not just at Piaggio, but also at Aprilia and Moto Guzzi, which we purchased at the end of last year, IMMSI will not oppose proposals to bring forward a Piaggio IPO to 2006, if the other shareholders are in agreement."

Commenting on Group performance in the first five months of 2005, chief executive officer Rocco Sabelli stressed "the 6-7% year-on-year increase in Piaggio Group net sales in the January - May period, with particularly strong growth in May. This trend, which we expect to continue in the June figures, reflects improved performance on the Italian two-wheel market, progress in Spain, the USA and India, and the recovery at Aprilia, especially in scooters, and Moto Guzzi."