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Suzuki appears to be like to increase manufacturing capability with new Haryana plant | Autocar India

Written by Ravi Kapoor

Suzuki Motorbike India’s new facility shall be built-in with Maruti Suzuki’s vehicle operations.

Suzuki Motor Company has introduced a brand new two-wheeler manufacturing facility in Haryana. This unit will combine with Maruti Suzuki’s vehicle operations and is a transparent indication that the guardian firm desires to benefit from vendor synergies and guarantee a aggressive value construction.

The opposite Japanese entity with an analogous enterprise mannequin is Honda, which has its automobile and two-wheeler vegetation at a single location in Rajasthan. 

 

New plant to be world hub

Suzuki Motorbike India will now be seeking to bolster its presence with the brand new plant, which might double up as each, a world and electrical manufacturing hub. Practically 4 years in the past, the corporate was wanting to increase past its current location at Haryana to the south, the place it was in talks with the governments of Andhra Pradesh and Telangana.

Suzuki was of the view that it needed to be future-ready as soon as it reached peak two-wheeler manufacturing capability of 1 million models yearly at Gurugram. “The South is a big two-wheeler market, and it is sensible to have a location there to enrich our operations within the North,” a senior member of the management workforce had advised our sister publication Autocar Skilled in a 2018 interview. 

Andhra Pradesh regarded like a stronger contender, because it had in its kitty distinguished auto manufacturers comparable to Kia Motors, Isuzu, Apollo Tyres, Amara Raja Batteries, Hero MotoCorp, and so on. Suzuki, nonetheless, modified its thoughts subsequently and determined that it made extra sense to proceed working in Haryana the place it already had entry to a strong vendor base.

The corporate has been working in India for the reason that 1980s when it first entered right into a three way partnership with TVS, earlier than parting methods in 2001. Over time, it was not capable of make a dent on this aggressive market and solely recently modified its technique to concentrate on premium bikes and scooters such because the Entry, Burgman and Gixxer.

Tapping into younger Indian patrons

From Suzuki’s viewpoint, there are causes to really feel assured, due to a brand new era of younger Indian patrons looking out for “rising motorbike classes”. That is the place the corporate hopes to faucet its world experience in large, highly effective bikes that may “supply the whole lot in premium and efficiency”. The Suzuki official had added that it might additionally concentrate on constructing a superb seller community with the suitable merchandise, to maintain prospects content material. 

India is already its main two-wheeler market, and the brand new plant will improve this presence additional whereas catering to a number of markets throughout Europe, ASEAN international locations and Japan. The final two years, particularly, have been very tough for the home two-wheeler business as a result of pandemic, which got here on the again of an financial slowdown. Producers have additionally needed to reckon with hefty value will increase, following rules regarding security and the atmosphere.

Senior officers at Suzuki Motorbike India had mentioned in newer interactions that it might play to its strengths and concentrate on what “labored finest for us”. The Burgman, they added, was gaining traction whereas the Entry had grown to grow to be one of many main scooter manufacturers.

Showrooms have been additionally being upgraded, with a “complete/concerted undertaking happening” when it comes to community enhancement. This concerned establishing a bike zone throughout the current showrooms to impart a premium really feel. These zones can be unfold throughout the nation in areas the place there was a rising development in the direction of 150cc (and over) premium bikes.

Usually, a few of these areas would comprise Bengaluru, Hyderabad, Chennai, Pune, Kolkata, Bhubaneswar and additional east to Guwahati and Aizawl. Officers mentioned the jap a part of the nation “positively has a passion for premium bikes” the place merchandise just like the Gixxer have been doing very properly. There was some work required to be accomplished in elements of the north “the place we should be represented higher and beef up our presence”. 

The corporate was clearly upbeat about its future in India and has been pulling out all of the stops over the previous couple of years.

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About the author

Ravi Kapoor