Suzuki plans second entry with two and three-wheelers

After exiting from a joint venture with Chennai-based TVS Motor in 2001, Japanese automaker Suzuki Motor Corp is getting ready for its second innings in the Indian two and three-wheeler mart.

The company has obtained government nod to produce, assemble, market and sell two and three-wheelers, including motorcycles, scooters, mopeds and their spare parts for the domestic market by acquiring a majority stake in a local company called Integra Overseas Pvt Ltd. Suzuki would initially acquire 51 per cent stake in the existing firm for implementing the project, sources said.

The shareholding would be increased, depending upon the demand of the products, they said adding that name of the company was also likely to be subsequently changed to Suzuki Motor India.

According to the sources, Suzuki plans to initially acquire and later increase its shareholding in the company through fresh allotment of shares or also through purchase of 1,85,43,200 shares from three existing shareholders, including metromode technology of Mauritius. The entry of Suzuki is likely to further intensify competition in the crowded domestic two-wheeler market.