Maruti Suzuki is no wonder India’s most successful car manufacturer, and a big contributor to the success is the partnership itself. Maruti had gained a lot of technical expertise from the Japanese auto maker, and Suzuki has had the advantage of Maruti for selling their products. Although Suzuki is doing very well in the 4-wheeler segment, it still is lagging in the 2-wheeler segment, which is India is a high volume business.
To cope with the situation, instead of introducing new partners Suzuki will take help from its existing partner Maruti. To get thing rolling in the right direction, Suzuki will move 30 people including managers and engineers from their existing work force at Maruti Suzuki put them at some important positions like, production, supply and human resources at Suzuki Motorcycle India Pvt. Ltd. At the same time new business segment will be created at Maruti to cater to Suzuki Motorcycles.
Even though Suzuki motorcycles use the latest possible technology, they still hold very little market share in the 2-wheeler segment compared to other manufacturers. As per a senior official “This will be like a hand-holding exercise for the motorcycle unit,” a senior Maruti official said about the reorganization, requesting anonymity. “We will help them in procurement of raw materials, identifying common vendors as we have a larger vendor base that could help them in saving costs.”
With this new move, we can expect more Suzuki bikes that will be India specific and priced accordingly.
Source – LiveMint