Suzuki enters 150-cc segment, launches GS 150R

Chennai, Suzuki Motorcycle India Private Ltd (SMIPL) today launched the GS 150R, a 150 cc motorcycle in the premium segment . The on-road price in Chennai is Rs 67,400.

Mr Anand Singh Thakur, Zonal Head (South and West), said, the bike will help the company get into the growth mode better since the 150-cc segment has been growing steadily. Initially, it hopes to sell around 5,000 units a month, which will help it notch a 10 per cent market share in the 150-cc bike segment.

Since its inception three years ago, the company launched two bikes Heat and Zeus and a gearless scooter Access in the 125-cc segment. About 70 per cent of the sales come from Access and the rest is contributed by the two bikes. Overall, the company has a market share of 1.25 per cent.

Sales target

The company hopes to end this fiscal by selling 1.75 lakh vehicles, utilising the full capacity of its plant. Last year, it sold 1.1 lakh units. It will invest about Rs 150 crore in the next three years to expand capacity. Within six months, the capacity will be increased to 2.5 lakh and at the end of third year to four lakh units. This includes doubling production of Access from 8,000 units a month now as the vehicle has a waiting period up to three months.

Last year, the company sold about 75,000 units of Heat and Zeus. It hopes to maintain the sales this year since the 125-cc bike segment is one of the worst hit in the slowdown.

To boost sales, it has tied up with Allahabad Bank to offer finance. Last month, it signed a similar agreement with Corporation Bank. It is in talks with a couple of nationalised banks.

The ad spend for the current year is Rs 40 crore with greater focus on Access. It will spend a similar amount next year also with focus shifting towards the new bike.

High-end bikes

It also sells high-end bikes 1,340-cc Hayabusa and 1,800-cc Intruder by importing them as completely built units. The company so far sold 35 units since their launch in November.

These bikes are sold only in Bangalore, Chandigarh, Chennai, Delhi, Hyderabad, Mumbai and Pune and the target is to sell one bike a day.
source: http://www.indiacar.net/news/n102975.htm