Suzuki doubles scooter sales target by FY'09

NEW DELHI: Buoyed by an encouraging response to its 125 cc gearless scooter Access, Suzuki Motorcycle India (SMI) has doubled sales target for the two-wheeler to 1.2 lakh units next year.

The company, which had set a modest target of doing 5,000 units per month, is now looking at selling 10,000 units per month from April next year.

"The customer response to the scooter has been tremendous. Without even starting a formal publicity campaign, the company has received as many as 20,000 bookings within a month, which has prompted us to revise the sales target to 10,000 units a month," SMI Vice President Marketing Atul Gupta told.
   
SMI had last month launched Access in the domestic market and is retailing it at a price of Rs 38,758 (ex-showroom Delhi), at a premium of Rs 500 over Honda's 100 cc Activa.
   
Gupta said the company would soon scale up production capacity to meet the increased demand from the market.

"The production capacity has to be scaled up to 1.2 lakh scooters, which could be as early as April next year. Our overall capacity is nearly 1.7 lakh units, which is being scaled up to 2.2 lakh units," he added.

Access will be available across the country by the end of this month and is presently being sold across 50 per cent of Suzuki's dealerships, primarily in north and south.
   
Gupta said the company has set a modest sales target of 10,000 units per month after discounting inflated demand for the scooter during festival season, which usually generates high volumes.
   
The company is planning to spend nearly Rs 20 crore in the next six months on a 360 degree promotion campaign, which would include television, radio and print advertisements, along with below-the-line activities.
   
"We will release a teaser campaign first beginning 25th of this month which would be replaced by a proper TV commercial on November 5 during the first India-Pakistan one-day match. Overall, we have earmarked a sum of Rs 20 crore for the remaining part of this fiscal for promotions," Gupta added.

The company presently sells 5,500 units of its 125 cc motorcycles -- Heat and Zeus. Suzuki has also revised the sales target for its two-wheelers to 10,000 units (including scooters) during the ongoing festival season.