Vol. 5: No. 7, July 2010

Suzuki sales getting back on fast track

(Bangkok Post, 23.06.2010)

Suzuki expects to see a turnaround of its ailing local motorcycle business this year, with sales volume projected to rebound to the level of three years ago.

Thai Suzuki Motor Co, the local distributor, is confident of its sales performance this year, buoyed by the warm reception of the many models it has launched, said Lertsak Navavimran, general manager for sales and marketing.

The third largest Japanese motorcycle maker is hopeful about achieving sales of more than 100,000 units this year thanks to the continued popularity of its new Smash, powered by 110cc conventional carburetor engines, and new Shogun and Hayate models, both equipped with 125cc direct-injection engines.

Sales of Suzuki motorcycles had reached 196,466 units in 2005 before sliding to 151,128 units in 2006. From 2007 to 2009, its annual sales dropped below the 100,000-unit mark.

Suzuki sold 80,334 units in 2007 and 84,006 units in 2008 but the sales fell again to 63,028 units in 2009.

Mr Lertsak said Suzuki's slow adjustment to the changing market was to blame for the lower sales.

In hindsight, Suzuki realised it was slow to switch to the automatic transmission system at that time despite the good response among consumers.

Yamaha was the pioneer in automatic-transmission motorcycles, followed by Honda.

Suzuki has used direct-injection engine technology in all of its motorcycle models except the Smash since early this month. The Smash continues to meet the demand in certain market segments for a low-budget, fuel-efficient bike that meets compulsory emission standards.

The introduction of direct-injection engines meets the mainstream demand of the market where the technology gained steady recognition due to its low fuel consumption and environmentally friendly emissions standard of Level 6.

Mr Lertsak said 500 million baht had been invested this year to upgrade the direct-injection production line, increase the production capacity and develop new models.

The company has set a sales target for the new 45,500-baht Shogun of 24,000 units per year while that of the 51,000- baht Hayate is 12,000 units.

In addition to the sales target of more than 100,000 units locally, Suzuki plans to export 100,000 motorcycles this year, he said.