The Hindu Business Line : Suzuki hopes to buy out partner in bike venture

Strengthening presence: Mr Katsumi Takata, Joint Managing Director, Suzuki Motorcycle India Pvt Ltd, and Mr Atul Gupta, Vice-President (Sales & Marketing), at the launch of ‘INTRUDER M1800R’ in the Capital on Wednesday. —

Our Bureau

New Delhi, Nov. 26 Suzuki Motor Corporation is considering to buy the stake owned by Managing Director of Suzuki Motorcycles India Ltd (SMIPL), Mr Satya Sheel, in its Indian two-wheeler subsidiary.

Confirming this, Suzuki Motorcycles India Joint Managing Director, Mr Katsumi Takata, said, “Internally, discussions are on.” He declined to comment further.

Suzuki Motor Corporation’s move in this direction could make the Indian two-wheeler company its wholly owned subsidiary. SMIPL, however, declined to reveal the exact stake currently held by Mr Sheel in the company.

New launch

Mr Takata was addressing the media at the launch of its two premium bikes Hayabusa and Intruder priced at Rs 12.5 lakh. In May this year, Italian bike maker Ducati also entered the Indian market with its bikes in the price range of Rs 15-50 lakh.

While the Hayabusa comes with 1,340cc engine, the Intruder is equipped with 1,783cc v-twin engine. Mr Takata said, “this launch is to make sure that Suzuki brand gets strengthened in the country despite such economic conditions globally.”

“The company has already received 28 orders combined for both the bikes. We are aiming to sell 300 bikes—hoping to corner almost 50 per cent of the market share of 800cc plus segment which currently stands at 650 units,” said Mr Atul Gupta, Vice-President, Sales and Marketing, SMIPL.

Mr Gupta said that the bike would be imported from Japan attracting a duty of 105 per cent for bringing it into the country.

With regard to the other bike and scooter models that it sells in the country such as Heat, Zeus and Access in the 125cc and GS150 R in 150cc segment, Mr Gupta said he expected the demand to remain steady.

“While financing is a problem since we are currently a very small player, we hope to achieve our monthly sales targets,” said Mr Gupta.

The company has a capacity to produce 15,000 bikes and scooters a month, which it is expanding to 22,000 units.

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