J.S. Rathore is the zonal manager of sales for northern India at Suzuki Motorcycle India Limited. Rathore was recently in Nepal for the launch of Suzuki Let’s scooter. He says that the Let’s was launched a month ago in India and is performing well in Indian market. Suzuki motorcycles are imported and distributed in Nepal by VG Automobiles and the company is planning to expand its network throughout the country.In an interview with Gaurav Aryal of New Business Age, Rathore talks about Nepal as a market for Suzuki two wheelers. Excerpts:
What brings you to Nepal this time?
I am here for introducing our new product, ‘Let’s 110 scooter, to the Nepali market. This product has good potential here.
How do you see the market for two wheelers like Let’s in Nepal?
Nepal is a good market for two wheelers. With annual sales of around 150 thousands two wheelers, this market sells 12, 500 two wheelers every month. The 110 CC scooters segment has potentials to occupy 23 percent of these sales. We are looking forward to tap this segment of the market, which is a growing market in Nepal. At present, Honda Dio is the highest selling scooter in Nepal and it does not have any major competitor.Let’s will compete with it. We believe that we can get a good market share and grow quite well in this market.
What is your expected sales and gain in market share?
We are expecting to sell four to five thousands vehicles in a year. Once the product is established in the market, we will definitely sell five thousands vehicles by next year. Initially, we will grab the market share and after its success, if Nepali market chooses that type of performance, we will tryto beat the sales of Dio.
How do you see Nepal as a market for Suzuki products?
It is a good market. This is basically a scooter market and motorcycles in 150 and 125 CC segment. Currently we are not present much in those segments. We are coming with those products and we will definitely grow in Nepal.
Are there any particular challenges that you face in this market?
The main challenge for us is to compete against established brands such as Dio and Pulsar. These products are established in the market whereas we are new and under pressure to grow. The dealer and distributor are also new. Distributor, dealer network as well as the product has to be established. These are the major challenges for us.
What is Suzuki planning especially for the Nepali market?
In next two to three months, we will be launching product that will compete with Pulsar and Yamaha. Our plan is to expand and provide our services from every corners of Nepal. At present, we have 28 dealers and we are expanding the dealer network under VG Group. Then, we will expand to small towns through sub-dealers. We have already started working on it because after sales service is as important as primary sales.
Nepal is a budget conscious market and some of your competitors already have a strong market presence. What are the advantages of your products?
The market still has further growth potentials. If we see in terms of pricing, we have offered a competitive pricing, less than Dio. And, consumers will get additional features, power and increased mileage with less investment. Compared to competitors we are offering more features and facilities at even better price.
