The Japanese company Suzuki’s Indian counterpart Suzuki Motorcycle India has mooted the idea to step into the entry level mobikes in the next fiscal. The company sees a high volume in this segment – in the price range of Rs40000 to Rs50000 and in 75cc to 125cc-, in which Hero Honda is the key player with 80% share. The motorcycle market has an interesting figures of share- 70% of the 58 lakh vehicles are of entry level mobikes with the executive modes (125-150cc) and premium with 250+cc.
The companies foresee a vital contribution to this market from the rural sector. Suzuki is on the venture of importing its 1000cc GSX-R (called Gixxer) and other two models Hayabusa and Intruder (@Rs12.5 lakh) which have found the sale tune of 100 units in the last 8 months. Suzuki stood on its own after the departure from its tie-up with TVS and now the break even is accomplished and the profit is expected in the fiscal end. The company is full of confidence as the production capacity has increased to meet the market demand for the mobikes. The Gurgaon plant will be upgraded to manufacture –from 1.75 lakh units to 2.5 lakh units- by the end of this fiscal.
The company has already allocated Rs150 crore for the expansion activities in addition to an earlier investment of Rs400 crore. The production capacity is expected to be increased to 4 lakhs by 2012. Suzuki India’s ranges in the Indian market are – a gearless scooter model, Access 125, Zeus and GS150R, Hayabusa and Intruder. There is an increase in the sale – from 12585 units in July from 10457 units in the same period last year –with an overall 1.4 lakhs units sold in the last fiscal.