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SMIPL to invest Rs 500 cr on capacity expansion

BS Reporter  |  Kolkata/ Bhubaneswar 

(SMIPL), a subsidiary of Suzuki Motor Corporation, Japan, plans to invest Rs 500 crore for capacity expansion to increase its share of the motor bike market in the country.

“So far we have invested Rs 500 crore at our Gurgaon plant and a similar amount is likely to be invested over the next three years to ramp up the capacity of this plant and also to set up a new plant in Rohtak district in Haryana”, said Rakesh Kumar, Deputy General Manager, Sales & Marketing, Suzuki Motor Cycle India Pvt Limited at the launching ceremony of Hayate, a new product in the mass motorcycle segment.

However, Kumar declined to elaborate on the investment plans for the Rohtak plant and said the new plant will be commissioned by 2014-15 with a capacity to produce five lakh units in the first phase.

On the company's future production plans, he said, while the present manufacturing capacity stood at 3.6 lakh vehicles per annum, it would be expanded to 4.5 lakh units by this fiscal and more than five lakh units by 2013-14. With the commissioning of the new plant, SMIPL targets to manufacture one million plus units by 2015.

Kumar said, the company aimed to capture five percent market share in the mass segment (100-110 cc) with the launch of its latest two- wheeler, Hayate.

The company officials refused to commit on the mileage of the newly launched bike saying that the kilometers per litre may be 70 kms based on actual driving conditions. It also plans to increase its customer touch points from 300 in 2012 to 400 by the end of 2013 in India which 20 touch points in Odisha.

The company would be present in all segments of two- wheelers by 2014 with six or seven more products in the pipeline. Suzuki has signed Dabangg’ star Salman Khan as its first ever brand ambassador.

Kumar said, the new bike has the perfect combination of power, pick-up and price to tap the emerging rural and semi-urban markets in India. The bike is available in two variants—Hayate KS and Hayate SS priced (ex-showroom-Bhubaneswar) at Rs 41,923 and 43,893 respectively.

First Published: Wed, May 23 2012. 00:55 IST