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Thread: Against the current trend, Suzuki Motorcycle India logs 16% growth!

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    Default Against the current trend, Suzuki Motorcycle India logs 16% growth!

    Suzuki Motorcycle India, the two-wheeler arm of Suzuki Motor Corporation has posted strong double-digit growth. This comes as a surprise at this time when the Indian automotive industry has been going through a turmoil of sorts. Manufacturers have been reeling because of the slump in the sales and demand in the automobile industry. Suzuki's growth, seemingly, comes as a result of their new premium scooters.

    The drop in growth has been uniform throughout the industry in the run-up to the implementation of BS-VI emission norms in April 2020. But Suzuki Motorcycle India is confident of using its full capacity at the existing plant in two years. Not only that, but they are also going ahead with their plans of scouting for a fresh land parcel for the new factory. A decision like that from Suzuki comes at a time when automakers are shutting their plants due to falling demand. And despite that, Suzuki is looking at a sales target of 1 million units in the domestic market by the end of FY21!

    Koichiro Hirao, president of Suzuki Motorcycles India, has stated: “Yes there’s a slowdown, but we know it is temporary. The market will bounce back in the coming year and Suzuki would like to continue to play a bigger role in India, which is the largest market in the world. The average age of two-wheeler buyers is 27 and they will continue to drive growth in the future.”

    The Indian two-wheeler market has declined by around 12% from April to July of FY20, but Suzuki posted a growth of 16%! In FY19, Suzuki Motorcycle grew its domestic sales by 33%, ending the year with a market share of 3%. But Suzuki also admits that their sales have been affected too with the overall market. The company is now estimated to grow by 10% in FY20 against its earlier plan of over 30%. While the need for a second plant is still there, the urgency to put it up has been somewhat alleviated due to the softening demand. This has provided the company with ample time to finalise the location of its second plant.

    The company is also looking to increase its exports from India to 100,000 units during the ongoing fiscal. At present, Latin American countries and neighbouring countries such as Bangladesh are the crucial export markets for Suzuki Motorcycles India. Currently, India accounts for a little less than 30% of Suzuki’s global motorcycles business. Hirao said the share is likely to rise in the future, as India takes more lead responsibility to cater not only to emerging markets like Sri Lanka, Bangladesh or Africa or Latin America but also developed markets like Japan, Europe and the US.

    The company will stick with its decision of staying away from mass-market commuter segments in India and focus on premium scooters above 125 cc and premium bikes above 150 cc. The company has also started work on building its electric portfolio and should have electric vehicles ready by 2021.

    Last edited by NewsReaper; 08-26-2019 at 09:51 PM.

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