Auto News

Suzuki to expand its dealership in India

By Motortrend India Staff   |   03 January,2008

Suzuki Motors intend to increase their dealership in India by 2010. This is a step to increase their sales to one million units as well as for a better position in the Indian auto market.

India's auto industry is growing by 10 percent annually, now it is a hotspot for other foreign carmakers. Japan's manufacturers, Toyota Motor Corp, Honda Motor Co, and Nissan Motor Corp want to start a new plant by 2010, as reported. With growing sales in India, Suzuki plans to concentrate on the foreign market, which is India, rather than its domestic market.

Even though Suzuki with its partner Maruti Udyog has heralded many successful ventures, the latest ones being the Swift and SX4, Suzuki plans to completely fund the dealership expansion plans on its own. The expansion is estimated to cost $3.5 billion that will be assigned for amplifying a dealership network to 1000 in numbers.

So far the competition was not strong, but with cheap and small cars from other auto makers entering the market, the scenario has drastically changed. Maruti 800, now costs Rs 1.92 Lakh in New Delhi showrooms. By compromising on car prices, Suzuki is risking low profit margins and branding may also be affected.

Suzuki's global car A-star and Splash, in the compact car segment, will be unveiled in the 2008 Auto Expo. Its Indian manufacturing facility will export A-Star units to Europe by 2008. It has also announced the coming of the Swift sedan (diesel and petrol) and the diesel version of SX4. The Swift sedan will be a replacement of Esteem sedan.

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