Suzuki Motorcycle India Plans to Expand Production Capacity

Suzuki Motorcycle India Ltd (SMIL) sells around 5 lakh units per annum and recording a continuous growth in their sales. Around 75 percent sales of the company comes through their scooter segment which has a fleet of vehicles, and Swish is the latest entrant in the portfolio. While the remaining sales has increased after the launch of a new affordable commuter Hayate. The company recorded a hike of 9% in their September 2013 sales figures as compared to September 2012.

Currently, Suzuki two-wheeler has a production capacity of 5.4 lakh units per annum through its only plant in Gurgaon, Haryana. So taking a futuristic thought, SMIL is planing to expand the production capacity of the plant by 25-30 percent and setting up a new plant in Rohtak, Haryana to fulfill the future demand.

Atul Gupta, executive vice-president, SMIL said, "We aim to sell around 500,000 units during this fiscal, growing by around 20 per cent over last year. Currently, the production capacity at the Gurgaon plant is around 500,000 two-wheelers working in two shifts. We are planning to expand that by 25-30 per cent." However, he didn't talk about the investment that the company is going to invest on this project.

Currently, SMIL has 3 bikes named GS150R, SlingShot and Hayate, and 2 scooters named Access 125 and Swish in India product portfolio except its superbikes. And they have announced to launch two more products in the next fiscal. The company covers 4 percent share in the Indian market and started to export made in India products to other countries from the last year. They are also going to export units in new markets like Sri Lanka and Bangladesh by March 2014 which will further enhance the need of production.

Source: Business Standard