Market will get used to a higher price point: Suzuki Motorcycle India's MD

'The slowdown in the sales of scooters and motorcycles is a temporary phenomenon', says Satoshi Uchida

The automobile industry has had little to cheer about in recent months though Suzuki Motorcycle India (SMI) was one of the exceptions to have bucked the trend with a 40 per cent year-on-year growth in January. What has helped you register these numbers?

SMI has registered double-digit growth through the year, thanks to our product portfolio which is a combination of premiumness, quality engineering, and technology, while offering great riding experience. The success of newly launched products like GSX-S750, Burgman Street and V-Strom 650XT along with our existing products like Access 125, Gixxer 150 and Intruder 150 has helped us maintain the growth momentum. Our strong dealer network enables us to tap a large consumer base through the year. 

You are a late entrant in a very competitive market though you do have a very strong pedigree. How have you differentiated yourself and why do you think your rivals in the big bikes category still have an edge?

Every brand has its niche. Suzuki is one of the strongest players in big bikes segment in the country and is known for its world-class technology and service. Indeed, we were overwhelmed with the response to our latest offering, the V-Strom 650XT in India. Suzuki V-Storm 650XT ABS is a do-it-all motorcycle, renowned for its versatility that makes it appropriate for daily commute, long highway stretches, and for unexplored rough roads. Our other big bikes are GSX-S750 and Hayabusa. The testimony of our success is the growing demand for our two-wheelers across India. 

Scooter sales dipped last year. Is it a one-off or indicative of the motorcycle segment resurging? 

Scooters have been experiencing a slowdown in the wake of the increased insurance charges that have increased the purchase price for the customer significantly. Motorcycles also have been impacted. We believe that this is a temporary phenomenon and the market will get used to a higher price point.

Can the momentum continue for SMI without consumer demand picking up adequately? Do you see the higher income tax exemption limit announced in the interim Budget — if implemented by the new government — boosting demand?

India is the largest two-wheeler market in the world with motorcycles and scooters being the preferred mode of commute; it is projected to grow at a CAGR of more than 9 per cent and cross the $25 billion mark by FY2023. Purchasing power parity, better performance and easy financing options have pushed the demand for two-wheelers and will continue to drive growth for the segment. The interim Budget proposed tax rebates to the salaried individuals earning up to Rs 5 lakh allowing them to have higher disposable income. This move should boost the sales and growth of the Indian two-wheeler market.

There are reports of lack of job and high unemployment rates in India at the moment. Given that a two-wheeler is one of the first major investments made by new job market entrants in tier 2 and tier 3 cities, do these trends ring the alarming bells for you? 

The Indian two-wheeler market has been on an upward trajectory indicating a positive outlook and a strong market sentiment. Two-wheeler demand is a derivative of the overall income levels and the disposable income growth. Growth or a reduction in organised sector jobs is not a realistic indicator especially in an economy like India where the non-formal sector is a bigger job provider.

How are you planning to strengthen your dealerships and augment capacity?

At present, Suzuki Motorcycle India has 19 big bikes showrooms across the country. The segment holds an immense attraction in tier 2 and 3 cities. We will scale our network for big bikes as the market continues to evolve.