Suzuki eyes 4% of bike market

Suzuki Motorcycle India (SMIPL) today announced aggressive plans to capture a 4 per cent share of the Indian two-wheeler market in the next three years, with new products in motorcyles and scooters.

The company, which has already pumped in Rs 350 crore since last year and is planning to invest about Rs 150 crore in the next couple of years, will launch two new models next year.

Suzuki commands the number two position in the global bike market, but is a bits player in India with just one per cent of the two-wheeler market in the 15 months here in its second stint.

Its product portfolio comprises of only two bikes, Heat and Zeus, which together sell about 15,000-16,000 units a month, in an Indian market of 4,00,000 bikes monthly.

The company is, however, optimistic about its second innings in India, after the its initial venture with TVS broke down.

"If we get an adequate response from our target customers we might invest limitlessly," said Satya Sheel, managing director, SMIPL.

The manufacturer of the legendary Hayabusa has targeted an annual production of 3,50,000 two-wheelers by 2010, aiming for a four per cent market share.

The company unveiled the Access 125 gearless scooter, which is placed in the mid-sized segment, one of the fastest growing segments in India.

It has targeted a 10 per cent share of the mid-sized scooter market, starting with about 5,000 units monthly.

This segment is dominated by Honda Motorcycle and Scooter India Pvt Ltd, a wholly owned subsidiary of Honda Motor Company, which has about 60 per cent of the market.

Sheel said that the scooter foray was part of the company's plan to diversify into all segments.

"Next year we will launch two other products, one of them early 2008 and the other by December 2008," he said.

Suzuki also plans to double its dealer network from 145 now to 290.

To a question whether Suzuki could match up to seasoned bike-makers like Bajaj and Hero Honda with its small portfolio, Atul Gupta, vice president, sales and marketing said, "Too many products will put a burden on the small network. So, we will strengthen the distribution first. That will be company's strategy, building the network and launching products."

Suzuki broke up with its Indian partner TVS in 2001 over issues of management and ownership. It could not re-enter the Indian market for three years due to a non-competing clause.

The Indian motorcycle market has grown in size and has become more competitive in this period. But Suzuki is confident it can do well.

"We are not late entrants. The Indian two-wheeler market is still far from its peak. As roads and purchasing power improve, the best is still to come," Sheel said.

"The company has a manufacturing plant in Haryana with an annual capacity of 1,00,000 units that will be increased to 1,75,000 units by next year," Sheel said.