Suzuki Motorcycle, for which India is the largest market with around 35 percent volume contribution, today said it has set a target of doubling its volumes in the country by 2019-20 to 1 million units.
Suzuki Motorcycle India (SMI), the fully-owned subsidiary of the Japanese auto major, is on course to clocking a volume of 5.7 lakh units (5 lakh in domestic sales and 70,000 in exports) in the current fiscal, ending March 31.
It has clipped past 30 percent growth in sales so far this fiscal, 2017-18.
The 1 million target means the company is looking at clocking over 45 percent growth from its present volume year-on-year for the next two fiscals.
“India has been the No 1 for us in volumes for many years now and has been exceeding our targets and expectations,” Suzuki Motor Corp executive general manager Masahiro Nishikawa told PTI here.
“For the first time, India is reporting net profit this year overall. Last year, we were profitable on the exports side but not so from domestic operations. But this year both exports and domestic operations will be profitable on a revenue of Rs 3,500 crore. So, we are very happy with India,” he said.
Satoshi Uchida, managing director at Suzuki Motorcycle India said that “buoyed by the robust growth in the industry, we have set a target of crossing 7.7 lakh volumes in FY19, of which 7 lakh will be domestic sales and the rest exports.
“For FY20, we have set a target of clocking 1 million units in sales of which 10 percent should be exports.” When asked about market share target, he said currently, it is 6-7 percent in scooters and around 10 per cent in 150- cc bikes segment.
“From a volume perspective, scooters with its flagship Acces nets over 80 per cent of the pie, and the 150-ccc bikes gets the rest. Going forward, we see this settling at 70:30,” Sajeev Rajasekharan, executive vice-president at Suzuki Motorcycle India said.
At the 14th Auto Expo, the company has launched an array of premium products including a new scooter – Burgman Street, which is a 125-cc advanced luxury scooter; a new apex predator GSX-S 750 and a new Intruder fuel-injection variant.
The Burgman Street is a descendant from the legendary Burgman portfolio with a cutting-edge premium design from the European scooter design language. The scooter is scheduled for commercially launch early this year.
Powered by the GSX-R, the GSX-S750 marks Suzuki s presence in sub-1000-cc big-bike segment and will be made locally, making it second power bike after the Hayabusa, Rajasekharan said.
Its recent launch the Intruder, which is cruiser bike, gets a new fuel-injected variant to complement its unique luxurious styling.
Suzuki Motorcycle entered the country in 2006 and has an installed capacity of 1 million. When asked about capex, Uchida said they have adequate capacity till FY20 when they will look at greenfield plant, preferable in the South or in the West.
“We will have to have a new plant by 2020, which will go onstream from mid-2021. But we haven’t finalised on the location. But yes will have a new plant by 2020 for sure,” Uchida said.
This is published unedited from the PTI feed.