Companies

Suzuki Motorcycle to invest Rs 600 crore for setting up 2nd plant

Our Bureau New Delhi | Updated on July 19, 2018 Published on July 19, 2018

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Plant location to be decided in a couple of months

Suzuki Motorcycle India (SMIPL) will invest around Rs 600 crore for setting up its second plant that is likely to come up in the next two years.

Satoshi Uchida, Managing Director, Suzuki Motorcycle India, told reporters here today that the existing plant at Gurugram (Haryana) has a capacity of 10 lakh units per annum, and to expand the capacity, the company needs to have a second plant.

“We are studying right now and in a couple of months decide on where the facility will come up. We will need around Rs. 600 crore just for the plant structure,” he said.

BusinessLine recently reported that the company is not looking at southern India any more, and is now looking around the same area for the second plant.

Market research company KPMG is doing a study on selecting the area, and it will soon finalise the place.

KPMG had done a study on the southern market last year, but it did not give an ideal picture for setting up a plant there, Sajeev Rajasekharan, Executive Vice-President - Sales and Marketing, SMIPL, had said.

Uchida said it will make sense to build the new plant around the existing facility because of the availability of the supply chain here.

Meanwhile, the 100 per cent subsidiary of Suzuki Motor Corporation, Japan, launched Burgman Street -- a 125cc scooter and the descendant from its legendary Burgman portfolio – priced at Rs. 68,000 (ex-showroom Delhi).

The new scooter has a four-stroke air-cooled engine with SOHC 2 valve single-cylinder BS-IV engine with 8.7ps @7000 rpm and 10.2Nm @5000 rpm. It is also powered by the Suzuki Eco Performance technology that offers an optimal fuel-efficiency without compromising on either power or performance, the company said.

“The 125cc segment in scooters is an exciting place currently where we also enjoy a strong leadership position. Equipped with exciting features, Burgman Street redefines luxury and comfort in scooter segment in the country,” Rajasekharan said.

Published on July 19, 2018
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