Suzuki Motorcycle to invest Rs50 cr by 2010

Suzuki Motorcycle to invest Rs50 cr by 2010

New Delhi: Seeking to make its presence felt in the Indian two-wheeler market, Japan’s Suzuki Motor Corp (SMC) will be investing an additional Rs150 crore by 2010 on capacity expansion and new product launches.

Suzuki, which re-entered India in 2006 on its own with the launch of two bikes after breaking off from a join venture with TVS Motor Co in 2000, is looking to launch at least two models every year.

“So far we have invested Rs400 crore. We will be making an additional investment of Rs150 crore by 2010 for expanding our production capacity and also for new models we plan to bring to the market," Suzuki Motorcycle India Vice-President Marketing and Sales Atul Gupta said.

“The company’s production capacity will go up to 2.5 lakh per annum by the middle of next year from the current 1.7 lakh units," he said while launching a new 150 cc bike, GS150R priced at Rs59,000 (ex-showroom). The motorcycle will, however, be available in the market by January next year.

Suzuki Motorcycle India Pvt Ltd (SMIPL) is also looking to leverage for future products on the research and development programme enhancement being taken up by SMC for its Indian car subsidiary Maruti Suzuki India.

“We will not have our own R&D (for two-wheelers) but SMC is strengthening R&D in India for Maruti and maybe motorcycles will also be a part of it," SMIPL Joint Managing director Katsumi Takata said.

Gupta said that with its gear less scooter ‘Access 125´ getting favourable response from the market in the short-term, the company will be focusing on the scooter market.

“It is clear that financing problems are a big issue with motorcycles. Moreover, our two models Zeus and Heat (both 125 cc) have not been competitive. So in the short-term we will be focusing on scooters but that will not mean that we will ignore the motorcycle market," Gupta said.