Maruti to source commodities to its apex plant
After a hectic start in the two wheeler segment in India, Suzuki Japan is now refreshing its sourcing from its ally Maruti. This comes to the effect of reducing the material cost and Suzuki’s bid to expand its operation and presence in India. Suzuki is not as strong as Maruti is in the four wheeler segment – nearly 50%. The VP for sales and marketing for Suzuki said that Maruti will supply the necessary parts to contain the price of two wheelers. The deal will be in proportion to the sourcing from regular suppliers to compensate the price.
Suzuki is badly in need of a push in the highly potential market where it has just 1.8% share and it has 30% share in scooter segment. Soon there will be a 125cc motorcycle from Suzuki, Slingshot and subsequent expansion in 100 cc segment. Suzuki’s need now is to tap the two wheeler market by doubling its production and brand range in another two years. Suzuki is to invest Rs500 crore to increase the production to 540000 per year in addition to launching three new models of which one will be a scooter. The existing range of vehicles from Suzuki are GS150R, Hayabusa 1300 , Intruder and Bandit 1250S.