Moneycontrol

Budget 2023Budget 2023
Upcoming Event : LeapToUnicorn - mentoring, networking and fundraising for startups. Register now

Here’s why Suzuki Motorcycle may have to invest in new capacity soon

With demand outstripping supply, the company’s existing plant is already being pushed beyond the limits. Suzuki’s Gurugram-based plant has an installed annual capacity of 750,000 units; however, based on its February production rate, the facility is operating at 116 percent utilisation level.

March 25, 2021 / 03:44 PM IST

If demand continues to remain robust, Suzuki Motorcycle India, the country’s sixth-largest two-wheeler maker, may run out of manufacturing capacity in a couple of years, a top company executive said to Moneycontrol.

Suzuki has seen demand head north over the past six months especially for scooters such as Access and Burgman. Though festive demand boosted overall two-wheeler sales, the ongoing marriage season and upbeat demand from rural areas have ensured that most factories are running at peak capacity.

Devashish Handa, Vice President (sales, marketing and aftersales), Suzuki Motorcycle India, said: “The demand recovery has been much steeper than expected. The industry is quite upbeat and confident. Everyone is coming back into investing mode.”

While Suzuki clocked a fall of 29 percent during the April-February period compared to the same period last year, it is currently running its plant at more than 100 percent capacity. Suzuki’s Gurugram-based plant has an installed annual capacity of 750,000 units; however, based on its February production rate, the plant is operating at a 116 percent utilisation level.