Suzuki to double production capacity

MANILA, Philippines - Japanese multinational firm Suzuki Philippines Inc. plans to double their production capacity as they open their new P1-billion facility in Canlubang Laguna in July.

In an interview at the launch of the Suzuki GD110 at the Edsa Shangri-La yesterday, Suzuki assistant general manager Benedict Martin Arreola said their production capacity would increase when they open in July, and further increase to 100,000 units in November once the plant is already operating at full capacity.

Arreola said that in 2011, they only produced 60,000 units at their Pasig plant. Once the Canlubang facility is operational, Suzuki will use the Pasig office only as a sales and marketing headquarters.

Last year, the motorcycle industry did not grow as expected. Arreola said they were targeting 860,000 units for 2011, but actual sales were only 730,000 units. The slowdown was because of the slow implementation of infrastructure projects of the government. Arreola said this led to low employment.

For this year, Arreola said the industry would like to hit anew its 2010 sales of 760,000 units.

To do this, he said, they would have to expand the market. Suzuki serves the C and D segment.

Arreola said 42 percent of motorcycle buyers are from the D market. He said high fuel costs could lead to a larger market given the fuel efficiency of motorcycles. Motorcycles can run 30 to 40 km per liter while a fuel efficient car runs only 15 km per liter.

Suzuki sold 93,300 bikes last year. This year their target is 120,000 units or 10,000 bikes per month.

Arreola said they would like to concentrate on the mass commuter category. Their newly launched GD110 is the cheapest among the Japanese models at P47,900.

Suzuki Philippines is confident that the operation of a new plant would contribute greatly to the motorcycle industry as they would be able to create more motorcycle units and would be able to respond faster to market demands.

The opening of the plant in July is expected to create a number of jobs for Filipinos.

Suzuki Philippines was established in 1985 in Pasig City where it continues to manufacture, assemble and sell Suzuki motorcycles.