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Thread: Suzuki to invest Rs 150 cr to double capacity by 2012

  1. #1
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    Default Suzuki to invest Rs 150 cr to double capacity by 2012

    NEW DELHI: Suzuki plans to invest Rs150 crore to double the production capacity at its wholly-owned two-wheeler company in India to 5.4 lakh units by 2012 and to foray into the high-volume 100 cc segment of motorcycles. The Japanese automaker is looking at generating volumes from the 100 cc bikes that currently account for 45% of the 9.3 million strong domestic two-wheeler market. Hero Honda leads the segment with its two products Splendor and Passion, while Bajaj Auto has gained huge numbers after re-entering the market last year with its Discover 100 cc bike.

    We are yet to make a strong beginning in the bike segment though we have cornered 26% of the automatic scooter market with our single offering Access 125, said Atul Gupta VP (sales and marketing) Suzuki Motorcycle. He said the existing bikes with 125 cc and 150 cc engines have significant presence in their segments, but absence in the entry-level 100 cc has restricted Suzukis business from scaling up. So, the firm has decided to develop a new product to gain volumes.

    Earlier, present through a venture with TVS Group, Suzuki had formed a wholly-owned unit in the country and started selling its two wheelers five years ago. Suzuki separately also owns majority stake in Maruti Suzuki, the countrys largest carmaker.

    Suzuki will also start exporting to neighbouring countries like Bangladesh and Sri Lanka once the new capacity comes upstream. It also plans to launch two new products, including a new scooter and a bike, to expand its market share even as the domestic two-wheeler market is projected to cross 12-million mark for the year ended March 2011.

    Suzuki has a dominant position in the superbike segment with its top-seller Hayabusa and Intruder bikes. Although, superbikes have low volumes given their higher prices, they contribute to earnings. Suzuki has sold over 300 units so far. We are selling one superbike every day and the segment should reach over a 1,000 units this fiscal. But the real growth is coming from the scooter segment where our Access 125 enjoys three months waiting for customer delivery, Mr Gupta said.

    Source: Suzuki to invest Rs 150 cr to double capacity by 2012 - Two-wheelers - Auto - News By Industry - News - The Economic Times

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    Super Moderator sunilg's Avatar
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    News approved.
    (Been There Done That) x 3.25

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    AMG
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    What is the use?

    All they will do is increase the production of Sling Shot.

    Why dont they bring a made in India 250cc with 40 BHP?

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    Rusted sheelpriye's Avatar
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    Quote Originally Posted by AMG View Post
    Why dont they bring a made in India 250cc with 40 BHP?
    If you are asking, increase your expectations.

    Suzuki GB Motorcycles/ATVs : Product intro

    Suzuki GB Motorcycles/ATVs : Product intro

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    whats the use of doubling the production, who buys them anyways.!! :P

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    Rusted Satyamzma's Avatar
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    150 crores for developing a 100 cc Product

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    a 100cc bike styled like heat will sell in good numbers atleast in rural areas..competition for survival in this cut throat market must be driving them.But do include a juicy offering in your product portfolio suzuki..you desperately need one in the 150cc+ space
    It all begins with a thumb-start -- Oh, wait, I forgot the kill-switch

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