Suzuki Motor Company plans to buy out its local partner for two-wheeler manufacturing in India. The parent company had always planned to make, Suzuki Motorcycle India into a wholly owned subsidiary. It had set up its joint venture with Integra Overseas to manufacture motorcycles in India. Integra is not expected to make an exit from the joint venture where both the companies had 51:49 shares with Suzuki holding 51 percent share. The Japanese firm is expected to buy out its local partner for an undisclosed amount.
Suzuki had earlier bought government’s share in Maruti Suzuki India limited, it company that manufactures passenger cars in India. MSIL is India’s largest car manufacturer and the second largest car exporter of passenger cars from India.
MSIL and Suzuki Motorcycle India are slowly finding operational synergies but still plan to maintain their identities in the market. They are also looking at joint raw material sourcing to bring down the input costs. On the marketing front as well, Maruti dealers are also becoming Suzuki dealers for the motorcycles. Suzuki is aiming at 100 percent capacity utilization this fiscal.