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| Suzuki to invest Rs 500 cr in doubling production |
| Vijay C Roy / New Delhi/ Chandigarh Sep 04, 2010, 00:41 IST |
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Two-wheeler maker Suzuki Motorcycle India Private Limited (SMIPL), a subsidiary of Japan-based Suzuki Motor Corporation, has announced an investment of Rs500 crore to increase production capacity at its existing location at Gurgaon(Haryana). Currently, it produces 250,000 units annually, and intends to take it to 540,000 units by 2012.
The company has already invested around Rs450 crore in the facility and will inject another Rs50 crore in enhancing its capacity. Also, buoyed by the response from the market, the company expects to sell 250,000 units in this financial year as against 180,000 units in the corresponding period last year, 2009-10.
The company launched Suzuki SlingShot, its 125 cc motorcycle. Targeted at the mass segment, the Suzuki SlingShot is positioned to fill the void that currently exists between the 100 cc and the 150 cc segments. With the launch of SlingShot, the company is aiming at a 10 per cent market share in 125 cc motorcycle segment by 2010-11.
Suzuki’s current portfolio of both scooters and motorcycles includes Access 125, Suzuki GS150 R and high powered bikes like Hayabusa-GSX1300R, Intruder-M 1800R, GSX-R 1000 and Bandit 1250S.
Speaking to Business Standard, Rakesh Kumar, senior manager (sales and marketing), SMIPL, said, “We will further increase our product portfolio. We will be coming out with a 100 cc motorcycle and are in the process of finalising the project. In order to meet the demand we are aggressively expanding our production capacity to 540,000 units annually from 250,000 units a year by 2012 by investing Rs500 crore.”
On being asked about the sales, he added, “ In this fiscal year, we are targeting to sell 2.5 lakh units as against 1.8 units in the last fiscal year. Already we have sold 100,000 units during the first five months(April-August) of the current financial year, which is an increase of 40 per cent over the last financial year.” The company sales is dominated by scooters which contributes 65 per cent of the total sales.
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