Suzuki Motorcycle India looks at the entry-level segment for growth

Building of new market segments has not been new and with the promise that each segement offer as far as sales and market shares are concerned, is pushing all two- wheelers companies to have a broader and diverse approach to their segmentation rather than just pushing the accepted route. It now known that Suzuki Motorcycle India is planning to enter an entirely new segment of bikes - the entry level while also maintaining its thrust on super bikes (which means it will also introduce the Suzuki GSX-R 1000cc super bike also know as Gixxer) in the near future.

According to DNA newspaper, the Indian counterpart of Japanese giant Suzuki feels that the entry level motorcycles is the highest selling segment, which includes the bikes in the 75cc to 125cc range. This is ruled by Hero Honda with 80 per cent of the market share. Such bikes are in the price range of Rs. 40,000 to Rs 50,000 on road and account for 58 lakh motorcycle market while growing at an annual rate of 14 per cent.

Suzuki Motorcycle India Private Limited (SMIPL), a subsidiary of Japanese company Suzuki Motor (SMC), Japan has recently invested an additional Rs. 150 crore in the country by 2010, earmarked for capacity expansion, new product launches as well as for scaling up its distribution network. SMIPL, which is currently rolling out only the Zeus and Heat 125cc bikes and the Access 125cc scooter, is firming up plans to launch more two new two-wheelers in the Indian market every year. The company has already launched the new 150cc GS150R, superbikes Hayabusa and Intruder (imported as CBUs). The company which started out independently in 2006 after exiting a joint venture with TVS Motor expects to break even and make operating profits by the end of the fiscal. Since 2006, Suzuki has invested about Rs. 400 crore on its Indian operations and plans to have a manufacturing capacity of 4 lakh units by 2012.

Suzuki Motorcycle India Private Limited is currently running a 37-acre manufacturing plant it Gurgaon in Haryana with its current production capacity of 1.75 lakh units per annum, which would be scaled up to 2.5 lakh units by the end of this fiscal. Also on its radar is to scale up its dealership network to 500 outlets across the country in a phased manner. The company aims to garner a huge chunk of the marketshare in the two-wheeler segment in India by 2010-11, buttressed by new models and higher volumes.