MoM sales have increased, but YoY sales have declined by a staggering 50%
Suzuki Motorcycle India Pvt. Ltd. (SMIPL) is witnessing revival of demand since manufacturing resumed on May 18, 2020. SMIPL sold 31,421 units in the domestic market and exported 2,991 units in July 2020. Total sales amounted to 34,412 units at sales decline of 50.29 percent from total sales of 69,236 units in July 2019.
In July 2018, sales was reported at 58,805 units sold. Last year this time, the company was progressing well at 18 percent growth. Current Covid-19 pandemic related consequences have been far reaching, and two wheeler sales for the most part has been subdued across manufacturers.
MoM sales grew 37 percent in July 2020 compared to June 2020 when sales was reported at just over 25k. This is by design as manufacturers have only been gradual been able to increase business activity considering lockdown has been lifted in a phased manner over since May 2020. In August 2020, SMIPL will enter the 3rd phase of ‘Suzuki at Your Doorstep’. Currently, the online platform is operational across 279 dealerships so more folks can make a purchase at their convenience.
As sales gradually rebounds, Suzuki rolled out its 5 millionth bike at its Gurgaon plant in the first fortnight of July. SMIPL was on a growth track at the end FY20 at 5.7 percent over FY19. As early as 2016, SMIPL had set a target of 1 million units in annual sales by 2020. India isn’t just a humongous two-wheeler market, it’s also a growth market. SMIPL has been foresighted about India accounting for 50 per cent of Suzuki Motor Corporation’s (SMC) global sales.
Suzuki BS6 bikes
In the first week of March, most of the Gixxer series was introduced as BS6 compliant. About two seekers later BS6 Suzuki Intruder was launched. This was well within the end of month deadline to stop selling BS4 two wheelers.But before the deadline, came a countrywide lockdown owing to the Covid-19 pandemic. Starting July 2020, SMIPL revised its BS6 Gixxer series price range by 2k. Suzuki next plans to launch the V-Strom 650 in BS6 avatar. Bookings have opened, and teasers have been released.
Koichiro Hirao, Managing Director, Suzuki Motorcycle India Pvt Ltd. said, “With the unlock phase, the automobile industry is now marching towards normalcy in terms of production, distribution and sales while continuing to adhere to all the precautionary measures.
From August 2020, we will try our best to achieve Pre-Covid-19 production and sales volume. We at SMIPL follow detailed operating guidelines in addition to the Government norms and regulations emphasizing on social distancing and making wearing of masks mandatory for all employees at all times.
The gradual increase in our sales that we witnessed in only the second full month of resuming manufacturing operations has been made possible after the launch of our doorstep sales and after sales service program – ‘Suzuki at Your Doorstep’. Considering these days most of the customers search about a Suzuki product online before purchasing, we added the digital model of sales as well.”