Suzuki plans to launch 15 new models in India in next 5 years

Says by 2025 India will be the third largest automotive market in the world

Japan's small car major Suzuki Motor Corporation (SMC) plans to launch around 15 new models in India in the next five years to aid its arm Maruti Suzuki achieve target of selling two million units annually by 2020.

Highlighting the importance of its Indian arm as "more than ever before", SMC President T Suzuki said Maruti Suzuki India (MSI) will play a significant role in the group's plans for the next 100 years as an "engine with a lot of turbo".

"We are planning to introduce 20 new models in the next five years for the whole group.. Out of those 20 models, except for the Kei Jidosha (mini cars), rest will be launched in India," Suzuki said here during an interaction with a group of visiting Indian journalists.

When asked to specify, he said the total new models that would be launched in India would be "around 15" in five years.

He said the company will launch products in different segments and even get more into making of B and C segment (compact and mid sized) to keep pace with changing customer preference.

Commenting on significance of the Indian market, Suzuki said: "It is said that by 2025 India will be the third largest automotive market in the world. In SMC we have also made preparations to tap the opportunity."

On the role Maruti Suzuki is likely to play in SMC's next 100 year plan, he said: "The importance of Indian operations for Suzuki is growing, more than ever before. I would draw parallel of Maruti Suzuki as a driving force, an engine with lot of turbo... For us it is an engine which will exceed performance of 'Boosterjet' engine."

MSI, which currently accounts for 40% of SMC's total sales, is expected to increase it to 60% by 2020.

When asked about risk associated with over dependence on a single market, Suzuki admitted that it is a cause for concern considering how global markets are and reiterated the need for SMC and MSI to work together as a single team to mitigate the risk.

"There is a risk involved in it (over dependence on India). Maruti is managing the operations well and there are bright areas, however, there are shadow areas which are getting concealed too," Suzuki said.

Elaborating, he said in Japan tax rates have increased, including on mini cars and how to revive in domestic market is an issue. Moreover how to make the group's operations in Indonesia, Thailand and Europe profitable are "shadow areas" that needed to be assessed.

"The Indian market is not fully developed yet, we have to develop together and also explore new markets in Africa and Middle East jointly as a team," Suzuki said.