Suzuki's performance in India has been a story that has never been heard before and, chances are, will never be heard in the future too. In the Indian car segment, Maruti enjoys its monopoly with almost 50% of the market share. But in the two-wheeler segment, the story is very different. Suzuki sells one motorcycle out of every 100 motorcycles sold in India and 11 scooters out of 100 sold. These numbers are anything but desirable from a business perspective.
To increase the market share, Suzuki Motorcycle India Ltd. is taking its lessons from Maruti Suzuki by replicating its success story. This simply means emphasising on things like broadening the portfolio, increasing the production capacities, a pan-India network and low pricing.
"Sharing the Suzuki brand is both a boon and a bane. While the name Suzuki has top-of-the-mind recall, expectation on the sales and service front is huge due to what Maruti Suzuki has been able to put in place in the past three decades. While we both share the 'value-for-money' positioning of our products and have also created capacity, we have to augment our network and portfolio to challenge the leaders," Atul Gupta, Executive Vice President, Suzuki Motorcycle India Ltd. had said at the launch of Suzuki's 110cc scooter Let's.
Suzuki plans to increase the number of touch points from 600 to 3,000, and increase the portfolio from six to 12 in the next three years .
"Increasing the network is absolutely crucial to break into the big league. Nearly 65%-70% of the new touch-points will be in semi-urban and rural areas where motorcycles sell. At present, only one out of seven vehicles we sell is a motorcycle because our dealer penetration in these markets is low. Now that we have established a presence in every segment (personal scooter, family scooter, commuter bike, executive bike and sports bike), we will increase the depth of portfolio with multiple products in each segment so that the customer has greater choice," Gupta added.
In 2013-14, Suzuki sold four lakh two-wheelers in India and by 2016-17, it intends to sell 7.5 lakh units which means increasing the Gurgaon plant's capacity from 5.4 lakh units annually to 10 lakh units.