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Old 20th September 2016, 13:17   #1
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Default Suzuki Motorcycles to expand network with Maruti dealers

Suzuki Motorcycles is planning to expand its business in India, for which the company is seeking help from its sister concern - Maruti Suzuki. Under this strategy, the company aims to use Maruti's vast network and reach to spread the two-wheeler business. It has approached many existing Maruti Suzuki dealerships to add them as sellers of its products.

Additionally, Suzuki is also working on expanding the common component supplier base between the car and two-wheeler businesses. This will help in bringing costs down, thus making Suzuki motorcycles more affordable in the country.

Despite being in the country for around a decade, Suzuki Motorcycles hasn’t managed to capture a significant share of India's two-wheeler market. During FY 2015-16, Suzuki sold 3,13,300 two-wheelers in the country, which is a drop of 8% as compared to the previous year, while the overall industry grew by 3%. With a market share of just 1.9%, the company is trailing behind players like Hero, Honda, TVS, and Bajaj.

Meanwhile, Maruti Suzuki has managed to cap around 50% of the car market. Hence, the two-wheeler arm is now trying to benefit from Maruti's exposure and experience in the Indian market, in order to enhance its footprint in the country.

Suzuki has already invested around Rs. 3,000 crore in the Indian two-wheeler business and reported its first ever profit last year. At present, it has a production capacity of 0.7 million units per year.

Source: Business Standard

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Last edited by dZired : 20th September 2016 at 13:23.
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Old 20th September 2016, 13:26   #2
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

Great move! But with a portfolio of boring bikes(barring GSX150 twins), I don't see buyers getting more interested on Suzuki motorcycles.

If they bring in their 250cc motorcycle(not the inazuma pls), it would be great.
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Old 20th September 2016, 16:37   #3
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

This can be a great move for the Suzuki Two Wheelers. If they have common showrooms too it will help a lot for these scooters and bikes as many more footfalls can be seen in Maruti showrooms then Suzuki Two wheelers. Though they should improve on their product offerings. Only few bikes are worth talking about like the Gixxer twins. I think they should have something fast in 250/300 CC mark and that too which is manufactured in India. They can also launch something with the Inazuma engine but with a different name and price comparable to competition (read that as CBR or Duke) and it should be fun.

Suzuki can also display the bikes like Busa in these Maruti showrooms to attract customers.

Last edited by GTO : 21st September 2016 at 10:32. Reason: Typos
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Old 20th September 2016, 17:55   #4
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

This is definitely a great move. Service is the only niggling aspect with Suzuki 2 wheelers. They have got some pretty great products like the GS150r in the commuter segment, Swish/Acess/Lets in the scooter segment, Gixxer150, the old Inazuma's engine may come back in their upcoming GSXR250 as well and with the reach of Maruti's dealer and service network, this ought to skyrocket Suzuki's 2 wheeler sales. Bikes like the GSXR1000, Busa, GSXS1000 could also get Nexa endorsement and premium service Overall a good move.
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Old 20th September 2016, 19:10   #5
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

This is a great move IMHO! Love Suzuki bikes for their refinement and VFM. The smaller Gixxers are really good bikes. Would be nice for them to use the existing Maruti showrooms and hopefully will bring in some bigger bikes. Will get more people interested too. Also - the connection between brands will create an interest in the junta.
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Old 21st September 2016, 00:01   #6
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

I'm going against this tide here.

Maruti / Suzuki strategy gets even more baffling! First nexa. Now this. I wonder what will come next?

Hyundai selling their consumer products alongside cars? Mercedes selling buses alongside S-class? Well, that won't happen but then this is Maruti!
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Old 21st September 2016, 10:36   #7
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

Guys, I don't think Suzuki 2-wheelers will be sold in Maruti's car outlets. Rather, 2-wheeler dealerships will be offered to owners of Maruti outlets. If they accept, they can open separate 2-wheeler dealerships.
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Old 21st September 2016, 10:56   #8
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

Quote:
Originally Posted by GTO View Post
Guys, I don't think Suzuki 2-wheelers will be sold in Maruti's car outlets. Rather, 2-wheeler dealerships will be offered to owners of Maruti outlets. If they accept, they can open separate 2-wheeler dealerships.
The Maruti dealer in my city operates Renault, Toyota and 2 Maruti showrooms. Clearly, they are used to selling successful products. Seperate dealerships means extra investment on space, infrastructure and personnel. I think most of the existing Maruti dealers will turn down the offer.

During a conversation with Senior manager of one of the Maruti dealers, he told me they dont find value in Nexa dealerships with just 2 products right now, and that they have turned down even Nexa dealership offer.
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Old 21st September 2016, 22:59   #9
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The existing Maruti dealer principals have been approached with a proposal to open separate Suzuki two wheeler dealerships. This is a completely different entity and will be a standalone business.

Just that Maruti's existing dealers are being encouraged to take up Suzuki as well. Even if 10% of them agree, then it's pretty huge!
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Old 22nd September 2016, 10:36   #10
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Default Re: Suzuki Motorcycles to expand network with Maruti dealers

The Maruti dealership where I bought my car, ABT Maruti, has been operating a two wheeler arm, ABT Two Wheelers Ltd, for the past four years. They sell Suzuki bikes and the showroom is at a different location.
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