Amidst overall slowdown in the Indian two-wheeler industry, Suzuki Motorcycle India was able to post and maintain decent growth over the months in the current fiscal, thanks to its products like Gixxer, Access which got upgraded with new features. The company not only expects to end the fiscal with a decent growth against the industry’s expected degrowth but also looks to sustain the growth momentum with a slew of BS VI products line up. In an interview with R Ravichandran of FE, Koichiro Hirao, managing director, Suzuki Motorcycle India, said the company is confident that new products will propel its sales further and help post a double-digit growth next fiscal.
How have been your performance so far this fiscal as against the industry?
Bucking the industry trend, Suzuki Motorcycle India has been probably one of few registering a decent growth in the current fiscal year amidst overall slowdown, particularly in the two-wheeler sector, with its well-balanced product portfolio customised to suit local demand. Cumulatively, Suzuki Motorcycle India sold 7,49,755 units for the period between April 2019-February 2020. Inching closer to the fiscal end, we are happy with our sustained growth momentum. February was an eventful month for us as we unveiled BS6 compliant product portfolio at the Auto Expo 2020 that received an encouraging response from customers.
What have been the reasons for you to register growth despite challenges?
The success of SMIPL’s growth momentum is attributed to growing and expanding network, customised products and high engagement with the customer at the point of purchase. Go-to-market initiatives to create customer interest for our products along with marketing campaigns to fortify product relevance for our prospect customers. Last year, we entered the quarter-liter motorcycle segment with the launch of Gixxer 250 which has received overwhelming response from Indian consumers. Furthermore, we started 2020 with the launch of BS compliant Access125 and introduced BS6 compliant product ranges at the Auto Expo 2020. In February, we launched BS 6 compliant Burgman Street. We are confident that the new products launch will propel our sales growth in the Indian market further.
When do you see the actual demand pick up and the projection for next fiscal?
We have been doing well both in domestic and export markets. The new fiscal year holds newer challenges as the industry gets set to transition to BS-VI compliant products. We are focused on strengthening our motorcycle offering and continue to emphasise our growth strategy for the Indian market. Currently, the industry is going through a tough time due to various factors, let’s be hopeful that demand for two-wheeler picks up gradually and the industry has a positive growth line by the year-end. While we cannot talk on the numbers at this point, however, we aim to close the fiscal with double digit growth.
Have you been impacted by the coronavirus?
Till now we have not been impacted by coronavirus and we are gearing up not to get impacted in future as well. However, it seems at large that the auto industry is getting hurt because a good number of auto components come from China.
Are you looking at expanding your capacities at your plants and investments, new products if any?
Our existing manufacturing plant at village Kherki Daula in Gurgaon, Haryana, has a production capacity of one million units per annum. Once we attain the maximum capacity, we will invest in ramping up the production. Currently, our focus is to fully utilise our existing capabilities. With regards to new product, we will be launching our BS6 product portfolio ahead of the regulation deadline.
