 "Suzuki bets on Let's scooter")
Japanese automajor Suzuki strengthens its position in the Indian scooter industry, with the launch of new scooter, which targets personnel segment commuters. The company said it aims to capture 10% market share with this new scooter.
Ichiro Kondo, president - sales and marketing operation, Suzuki Motorcycle India Ltd said that India is one of the biggest markets, rapidly growing and youngest markets and the company is bullish about the market and its role in the country, despite the fact it is a late entrant.
He was talking on the sidelines of new 110 cc LET'S scooter regional launch at Chennai today.
Suzuki entered India by joining hands with TVS Motor, a Chennai-based two-wheeler major, however both the companies parted away after 19 years of successful collaboration, in 2001.
Suzuki re-entered Indian two-wheeler industry by launching its Indian operation in 2006. Current market share of the company in the Indian two-wheeler industry is around five%.
"Our focus has been the scooter segment, which helps the company to gain market share," said Atul Gupta, executive vice president - sales and marketing, Suzuki Motorcycle India Pvt Ltd. He added, market share of the company in the scooter segment varies from 8-12% depends upon the market. In the motorcycle company's market share is around one%.
While the industry split, between Motorcycle and Scooter, is 80:20, for Suzuki India it is otherway around. 80% of the sales comes from the scooter segment.
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In 2013-14 the company sold 3.7 lakh two-wheelers, of which 2.7 lakh are scooters and rest is motorcycle. The company currently offers two products (in the family segment) in the scooter category and one in motorcycle.
The company now launched LET'S scooter, a 110 cc vehicle focussing on personnel segment and target customers are 18-22 years drivers.
"We are targeting to sell around 10,000 units per month and want to capture around 10% of the market (personnel segment)," said Gupta.
It may be noted, at present one third of the total scooters sales comes from this segment.
The company set a target to sell five lakh two-wheelers, including 3.7 lakh scooters and 1.3 lakh motorcycles.
"By end of this calendar year, we will be launching few more motorcycles, including upgraded products for the mass segment," said Gupta, who agreed the company has been one product company and distribution is one of the challenges to take on the competition.
At present the company got 600 touch points and plans to increase it to 1,000 by end of this year.
Suzuki India plans to establish an assembling facility in Bangladesh, along with a local partner.Ichiro Kondo, president - sales and marketing operation, Suzuki Motorcycle India Ltd said so far the company exported around 10,000 units to the neighboring countries, including Nepal, Sri Lanka and Bangladesh and the company plans to double the export this year and in the next five years of the total production 10% will be meant for export markets.
Soon the company would strengthen its presence in Latin America and other countries.
The company has been sending vehicles as CKD format to Bangladesh and now plans to set up an assembling facility, said Kondo, who refused to share investment details.
The new facility can assemble around 2,000-3,000 units a year. "Advantage of having an assembling facility is to avail tax benefits," said Kondo.