Companies

Suzuki Motorcycle India on course to reach one million sales

V Rishi Kumar Hyderabad | Updated on June 03, 2019 Published on June 03, 2019

Suzuki Motorcycles   -  Website/Suzuki Motorcycles

Begins a feasibility study for setting up a second Greenfield plant in India

 

Suzuki Motorcycle India is heading towards achieving the magical number of one million sales within this financial year.

While achieving this sales mark from its India base in Gurgaon, it is also foreseeing the problem of capacity constraint.

The Japanese company has initiated a feasibility study for setting up a second Greenfield plant in India, apart from adding fresh capacity at the existing site.

Koichiro Hirao, Company Head, Suzuki Motorcycle India, said “We had closed last financial year with total sales of about 7.5 lakh units, including 6.7 lakh units in the domestic market and the rest through exports. This year we are looking to achieve total sales of about 8.6 lakh in the domestic market and along with it about 1.1 lakh from exports. Total sales volume will be closer to one million mark.”

Hirao said “while we take up feasibility for expansion, our priority is to expand the network of dealerships in the country and reach out to new markets.”

“We are looking at a growth of about 23 per cent this year and if the present trends and momentum is anything to go by we may hit the one million mark this year itself. This will mean the company will need new capacity to address future business,” Devashish Handa, Vice President, Sales Suzuki Motorcycles India, said.

New Launch

Speaking on the sidelines of launch of new Gixxer SF 250 and a 155 cc Gixxer SF, Handa said “Majority of the company sales came from the scooter volumes of over 6 lakh units last year. Our endeavour is to expand the motorcycle business while growing the scooters segment.”

“This growth would be possible with the launch of more motorcycles but in the premium category only. Soon the launch of these two motorcycles will be followed by the naked version of Gixer SF,” Handa explained.

While Gixxer SF 250 is priced Rs 1,70,655 ex-showroom, the Gixxer SF is being offered at Rs 1,09,870 ex-showroom.

Referring to the market conditions, Handa said that there have been liquidity issues and the sales volume growth in the industry has been relatively slow. Several factors which have contributed to this include the mandatory insurance for the longer term and high interest rates.

“We hope the new Government will look into various issues hurting the growth of the automotive sector including two-wheelers and take corrective measures, including bringing down interest rates. We hope good monsoon, Government moves and the festive season will provide fresh impetus,” Handa said.

Published on June 03, 2019

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