Suzuki invests P1B on facility

Sunday, January 22, 2012

AFTER investing P1 billion on a production facility, officials of Suzuki Philippines expect to bring up production to 200,000 units a year.

Suzuki Philippines president Satoshi Uchida said the plant in an industrial zone in Laguna allows them to double their production. Their first factory in the country is in Pasig City, Metro Manila. It also means an addition of 100 employees to their existing 400.

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Uchida told reporters that they also plan to localize their component parts supply this year, instead of importing from the neighboring countries of Thailand and Indonesia.

While they aren’t exporting yet, Uchida hopes to be able to do so in the future.

Suzuki Philippines general manager for motorcycle sales and marketing division Eiji Kobayashi said the Philippines has a big potential for their industry, due to a big population of Filipinos opting to use motorcycles as a means of transportation.

Uchida and Kobayashi were in Cebu Thursday to launch a new advanced commuter bike, the Suzuki GD 110.

Despite a dip in the overall sales of motorcycles, Suzuki said it saw a growth of 14 percent in the number of units sold. This year, they expect to grow 24 percent at 120,000 units.

Benedict Arreola, assistant general manager for motorcycle division, said the industry sufferred setbacks due to economic factors affecting the United States and Europe.

Spending

In the Philippines, Arreola said the government decided to cut down on spending. He said that without government projects to fuel the economy, the spending power of consumers was also affected.

Although he said Visayas and Mindanao did well due to its successful tourism and mining industries, Luzon was hit hard in 2011 due to several typhoons.

Sales remain higher in urban centers compared with rural areas.

This year, however, Arreola said the industry is optimistic of growing at least five percent as the government has several infrastructure projects lined up. He said Suzuki enjoys a 13 pecent share of the market.

He believes the company has managed to have positive results due to updated and innovative products, aggressive marketing and good pricing, which have made dealers confident in selling their motorcycles.

Arreola said the GD 110 is the first of a few new models of entry-level motorcycles they will be introducing this year.