Suzuki Motorcycles Towards Expansion Mode
Mumbai: A top functionary said that Suzuki Motorcycle India Pvt Ltd (SMIL), a subsidiary of Japanese two-wheeler major Suzuki Motor Corporation, has decided to invest Rs 150 crore to swell capacity and fortify its dealership network.
After launching the Suzuki Access 125 model in Mumbai, Satya Sheel, SMIL’s Managing Director said, “We plan to increase our manufacturing capacity from the present 1.7 lakh to 3.5 lakh units and double our dealership network from 145 in the next two-year period.”
“We have plans to invest Rs 150 crore by way of internal accruals by both partners,” Mr. Sheel added.
Currently, Suzuki Motor owns up 74 per cent equity stake, whereas its Indian partner has 26 per cent share. Earlier, SMIL had invested Rs 350 crore in the last two years, Sheel said, adding the company has no plans to hit the capital market in the near future.
Suzuki Motorcycle was aspiring to ramp up its dealership network from 145 to 290 by getting into B and C class cities, he said. Models like Heat (125 cc) and Zeus (125 cc) were directed to offer Indian clients a inspirational new feel in the 125 cc vehicle segment, Mr. Sheel added.
SMIL’s constructing division was established at Gurgaon with a yearly plant capacity of 1,70,000 units. The company has already used 6.5 acres of land and resting part of 30.5 acres is left for land development and future expansions.