As it attempts to regain ground in the Indian two-wheeler market, Japanese bike major Suzuki has categorically ruled out entering the big volume 100-cc segment and has said that it would focus on getting into other segments of the motorcycle market.
?We have no plans on getting into the 100-cc bike segment and we are very clear on this,? Suzuki Motorcycle India vice-president (sales and marketing) Atul Gupta told FE.
The 100-cc segment (dominated by Hero Honda) is the biggest volume segment in the Indian motorcycle market and, despite declining numbers, accounted for more than 60% share of the 6.5 million bikes sold in the market last fiscal.
Suzuki, that is re-establishing presence in the market post its break-up with the TVS Group, currently has two bikes in its portfolio, the ?Heat? and the ?Zeus?, both of which are powered by a 125-cc engine. Gupta said that an attractive price point of the Heat, that has a price tag of Rs 35,000 (ex-showroom Delhi), made the company confident of tackling competition from the 100-cc segment.
?We may not be making 100-cc bikes but the price point of the Heat is close to where 100-cc bikes are positioned. We are confident of getting in numbers from entry-level bike buyers and feel that the segment will gradually be defined by price point and not engine size,? Gupta said.
The company, that plans to invest Rs 150 crore for expanding operations – over the Rs 350 crore already invested – forayed into the scooter segment with the roll out of 125-cc scooter ?Access?.
Even though it has failed to get in enough numbers following the launch of the Zeus and Heat, the company is targeting a 4% share of the two-wheeler market by 2010, which is expected to cross 8.5 million units by then. The company currently has a dismal 1% share of the market through annual sale of about 80,000 units.
Suzuki, that plans to double its dealer network over the next 12 months, is expected to launch a 150-cc bike in India in the coming months and also plans to showcase its flagship super bike Hayabusa.