Monday, October 13, 2008

Suzuki gears up for motorcycle price war

The war is hotting up. And Suzuki India is gearing up for the competitive pricing war in the two-wheeler market. The auto-biggie is already selling its 125cc 'Heat' motorcycle with a competitive price tag closer to that of a 100cc.
The firm is now planning to target volumes by debuting the 100cc domain and is working on strategies to squeeze out profits from the extremely competitive entry-level segment. Atul Gupta, VP Sales & Marketing – Suzuki said that the company is planning to launch three new two-wheelers in the next two years and at least one of them will be a 100cc vehicle.

Gupta also believes that contrary to predictions, the 100cc segment still accounts for 70% of the overall market so entering this segment would make sense for the auto major. He further adds that analysis has shown that over the last several months, the pricing in the 100cc space have narrowed down and the trend will continue.
But the biggest challenge according to Gupta will be to find out how to remain profitable, while operating in the mass motorcycle segment. Industry gurus claim that Suzuki might seek support from its well-established sister-concern Maruti Suzuki India to rationalise the cost factor.

The other launches scheduled in the near future is a premium bike, which will be unveiled later this month, and which we presume could be the Hayabusa . Also industry sources say that another new bike, which would be in the market by March next year could be the much talked about 150cc bike. While, the 100cc bike would take over a year and half to hit the Indian roads.

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