Suzuki to start test production of motorcycles in Laguna plant

MANILA, Philippines - Suzuki Philippines will begin test production of motorcycle units in its new production plant in Canlubang, Laguna sometime next month.

Suzuki Philippines president Satoshi Uchida said the new plant would have a capacity of 200,000 units, double the capacity of 100,000 units of its old production plant in Pasig.

He said the production of motorcycle units and parts for domestic consumption would be localized to cut on transportation cost. Before, Suzuki Philippines imported parts from Thailand, Indonesia and China.

The company, therefore, would increase its current workforce of around 250 workers to around 500 workers to bring the plant to full operation.

For the meantime, the old factory continues to assemble its imported motorcycles. After the transfer of production operations to Canlubang, the administrative operations would be retained in Pasig.

The Canlubang plant had its groundbreaking in July last year, a month after the Board of Investments (BOI) approved tax incentives for the P1.5 billion expansion project for the production of motorcycles.

Suzuki Philippines only assemble motorcycle units. It imports completely built-up (CBUs) units from Japan and Indonesia.

“But in the future, if we can produce competitive (motorcycle) models, we can have a chance to export, not only completely built-up units but also components”, said Uchida in an interview at the sidelines of the launch of the Kizashi executive sedan on Thursday.

This year, Suzuki intends to sell around 120,000 units this year from 93,000 last year. 

Uchida said Suzuki currently holds a 15 percent share in the local motorcycle market of one million.

“We are aiming for more than 15 percent this year,” Uchida.

For its automotive segment, Suzuki would continue to import CBU vehicles until it reaches sales of 10,000 units, which Uchida said may be achievable in three years.

Suzuki has also formally entered the class D segment with the launch of the Kizashi executive sedan.

Uchida said the sales target for the vehicle is modest at only 100 to 120 units for the whole year

“Suzuki is already very much about the compact car category, but some customers have expressed interest in big cars,” said Uchida.

The launch of the Kizashi may be the start of Suzuki Philippines’ venture into upscale models. Uchida said that depending on the performance of the Kizashi in the Philippine market, Suzuki may start introducing more upscale models.

“We have also have to uplift our brand. Because of the Kizashi, it will be more exciting” he said. “We are looking at more good-looking models in the future. It is a very niche market but I believe we have a chance in this.”

The Kizashi, which is assembled in Suzuki’s manufacturing plant in Sagara, Japan is powered by a 2.4 liter engine coupled with Continuously Variable Transmission (CVT) with six speed manual mode that promises a quiet driving experience but powerful performance in low gears and fuel economy in high gear settings.

The Kizashi was avaliable in Suzuki dealership outlets for P1.288 million.