Suzuki Motorcycles to Focus on Premium motorcycle and scooter in India
In 2016 Suzuki managed to sell about 3.5 lakh units and expects vroom past 40 per cent in sales this year to around 5 lakh, and 7 lakh next year and 1 million in 2020, each year clocking over 40 per cent volume growth or so, says Satoshi Uchida, its managing director who took over the mantle in April 2016.
"Yes, we have not been consistent with our product and communication strategy. In fact we didn't have enough products in mass market so far. I think we had got into the wrong bus here in India but now we are in the right bus and on the right route," Uchida told PTI when asked whether they had lost the India bus all these years.
"We have the right strategy and plans now," he continues, "because we now know this market better. This is increasingly a scooter market in general and no longer a commuter only market."
"We'll grow almost three times between this year and 2020, growing over 40 per cent each year. The mandate is to clock 1 million units and double the market share to 10 per cent," Uchida said.
Uchida said the company will invest at least Rs 200 crore on new products here.
Asked whether the unit which has 1 million capacity plant at Manesar in Haryana, is profitable, Uchida answered in the positive and said last year the company clocked a revenue of around Rs 3,000 crore.
Currently it has only two scooter models-the 125-cc Access with drum brake and Access SE with disc brake, while its bikes portfolio include the Hayate EP, six varieties of the Gixxer 150 cc bike which also is the first bike in the country with ABS. That apart it has two racing bikes -the GSX-R1000 and the imported Hayabusa.
Rajasekharan said the company enjoys 5.5 per cent market share among scooters and around 5 per cent amongst bikes.
In the first half of the current fiscal, he said the scooter volumes soared 65 per cent from 1.6 lakh to 2.42 lakh while bikes sales have also been very good. It also ships India made bikes models to Latin America, Africa and SAARC regions and more importantly to the parental home market of Japan where it sold 1000 Gixxer bikes last year.
While in H1 last year export volume was 35,000 this year it inched up to 36,000 units only, Uchida said.Suzuki India is also planning big as senior officials are considering the country to be theglobal hub for their GSX-250R. The maker of Maruti Suzuki hopes to replicate its four-wheeler runaway success story in India in the two-wheeler segment by focusing on premium bikes/scooters,toying with the idea of manufacturing smaller versions of its famous big bike GSX out of India.But all this comes with a bitter condition that is not actually impossible but requires much more input from Suzuki than the present situation. Senior officials demand sales report that could ensure them of more than 1 million yearly sales by 2020. Going by the last report (August 2017), Suzuki Motorcycles India sold 47,745 units in one month.
Sajeev Rajasekharan, Executive Vice-President, Suzuki Motorcycles India said there is a clear focus on the volumes now as he admitted that they have to offer more choices to customers as well.
"For this we will bring in at least two bikes and scooters each year. The strategy will straddle between scooters, which is the volume grosser for us now and bikes where we will be having only 150-cc and above engine capacity."
They were once selling half the number of units than present situation and expecting a million is not bad at all. According to several people in the know, Suzuki is likely to bring in a cruiser motorcycle, a bigger 150 cc scooter, some of which could be in the above 150-400 cc range.
Uchida said Suzuki is considering if it can make smaller versions of its famous big bike GSX in a 250 cc or 400 cc avataar –– and use India as a global base for its export.
Uchida said Suzuki is considering if it can make smaller versions of its famous big bike GSX in a 250 cc or 400 cc avataar –– and use India as a global base for its export.In an interview with Economic Times, Satoshi Uchida, MD, Suzuki Motorcycle India revealed the brand’s plans for the country. He said:
“Since we are a late entrant, we need to have a different approach. Our immediate focus is on the fast-growing scooter space and premium motorcycles. Our aim is to grab 10% share in the segments that we operate. Once we reach scale, then we may look at mass market. Our chairman wants us to achieve 1 million sales (per year, by 2020), but he says do it in a sustainable manner, we have to use both brake and accelerator.”
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