Suzuki Motorcycles is planning to expand its business in India, for which the company is seeking help from its sister concern – Maruti Suzuki. Under this strategy, the company aims to use Maruti’s vast network and reach to spread the two-wheeler business. It has approached many existing Maruti Suzuki dealerships to add them as sellers of its products.
Additionally, Suzuki is also working on expanding the common component supplier base between the car and two-wheeler businesses. This will help in bringing costs down, thus making Suzuki motorcycles more affordable in the country.
Despite being in the country for around a decade, Suzuki Motorcycles hasn’t managed to capture a significant share of India’s two-wheeler market. During FY 2015-16, Suzuki sold 3,13,300 two-wheelers in the country, which is a drop of 8% as compared to the previous year, while the overall industry grew by 3%. With a market share of just 1.9%, the company is trailing behind players like Hero, Honda, TVS, and Bajaj.
Meanwhile, Maruti Suzuki has managed to cap around 50% of the car market. Hence, the two-wheeler arm is now trying to benefit from Maruti’s exposure and experience in the Indian market, in order to enhance its footprint in the country.
Suzuki has already invested around Rs. 3,000 crore in the Indian two-wheeler business and reported its first ever profit last year. At present, it has a production capacity of 0.7 million units per year.
Source: Business Standard