Suzuki Motorcycle exploring options for second plant

Company also plans to enhance capacity at Gurugram plant

Suzuki Motorcycle India has initiated feasibility studies for one more manufacturing plant in the country.

Even as the company evaluates the scope for another greenfield facility, it is also adding some more capacity at the existing plant in Gurugram, which now can produce a little over one million two-wheelers a year, by implementing debottlenecking measures.

The two-pronged strategy comes in the backdrop of the good sales the company had registered last year and the one million two-wheelers sales mark it expects to cross this fiscal.

“We are looking at 23% volume increase… from [last year’s] 7.5 lakh units to 9.7 lakh this year,” SMIPL vice-president Devashish Handa said.

As it happens, the company, behind the popular Access scooters and Gixxer bikes, expects scooters to sell more and bikes to gain more popularity.

The company market share in the country’s 6 million scooter market is 10%. “For motorcycle, our market share is very small… this year we want [to capture] 1%,” company head Koichiro Hirao said. SMIPL, Mr.Handa explained, was present only in the over 150 cc motorcycle segment and had no plans to get into the daily commute bike segment.

Company executives were speaking at the Hyderabad launch of new Gixxer SF 250 cc and Gixxer SF (155 cc) bikes.

On the plans for a new plant, Mr. Hirao said feasibility study was under way at multiple locations, the details of which as well as the proposed capacity and investments he was not willing to share.

Mr.Handa hinted that the company was considering all options with regard to possible locations, including in south India, and initial discussions had already begun.

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