Suzuki Motorcycles plans to sell 1 million units by 2020
Suzuki Motorcycles is ready to do things right this time. The Japanese two-wheeler maker said, it was on "the wrong bus" but now it's aware of the Indian market's demand. Therefore, it's now upping the efforts in India with a renewed focus. The company aims to double its market share in the country and attain the 1 million mark by 2020. Here's more.
What is it all about?
Suzuki Motorcycle India isn't a major player in the country. Hero Motorcorp and Honda enjoy almost 70% of the market share of the country's domestic two-wheeler market that witnesses annual sales of more than 17 million units. Suzuki Motorcycle India, on the other hand, enjoys a meager 5% share. However, India is currently the largest two-wheeler market for its parent company, Suzuki Corporation.
What is it planning now?
Satoshi Uchida, who took over as the MD of Suzuki Motorcycle India in April 2016, has set lofty targets. Suzuki had sold 3.5 lakh units in 2016. This year they expect a 40% increase in sales, which would mean 5 lakh units. Next year, the aim is to sell 7 lakh units and finally, 1 million in 2020. It's targeting 40% volume hike annually.
Why was it not successful earlier?
So, what did it do wrong all these years? Uchida believes that the firm has not been consistent with its product and communication strategy. "We didn't have enough products in the mass market so far. I think we had got into the wrong bus here in India but now we are on the right bus and on the right route," Uchida said.
Why will it succeed now?
Uchida says, now that the firm has a better understanding of the Indian market, it'll grow almost three times between this year and 2020, growing over 40% each year. The mandate is to clock 1 million units and double the market share to 10%. EVP Sajeev Rajasekharan said that the firm is now planning to bring at least two new bikes and scooters annually.
What's the game plan?
"The strategy will straddle between scooters, which is the volume grosser for us now and bikes where we will be having only 150cc and above engine capacity," said Rajasekharan. The firm will spend around Rs. 200 crore on new Indian products, said Uchida. Upon query, the MD informed that the firm had managed to accrue Rs. 3,000 crore in revenue last year.
