India Kawasaki Motors launches two CBU models, plans to begin spares export by year end

Pune, September 4, 2013: In an attempt to strengthen its two-product portfolio, India Kawasaki Motors (IKM) has launched its flagship bikes, the Ninja ZX14R and the Ninja ZX 10R as completely built units (CBUs) today. While the more powerful Ninja ZX14R will retail at Rs 16.90 lakh, the Ninja ZX 10R will be available for Rs 15.70 lakh, both prices are ex-showroom, Pune. IKM will be going solo with these two models which will be separately sold out from an all-new standalone retail outlet (yet to be inaugurated on September 7) in Pune.

Following a three-point focus of its Indian operations – manufacturing, marketing and parts exporting, IKM aims to consolidate its current position from India. While the company is planning more standalone retail outlets, the company officials say that the IKM-BAL (Bajaj Auto) cooperation will continue to thrive in the coming times. Shigeto Nishikawa, deputy managing director, IKM said that “we want to have our own trained workers to provide for the aftermarket servicing to these CBU models through our new retail outlet.” While BAL’s pro-biking showrooms will continue to retail the existing Ninja models (300 and 650), the upcoming Kawasaki retail outlet will sell all four models.

On the export front, the company is planning to begin exports of made-in-India spares to its other regional setups (Indonesia, Philippines, and other South-East Asian economies) from the year end. It must be noted that with the depreciating rupee against the dollar would stand to benefit the company along with the other cost advantages. According to Nishikawa, roughly 30 percent of a cost advantage is possible from exporting the made-in-India spares to other operational setups globally. “We see potential in the India-made parts in terms of costs and quality improvements. Since we have collaboration with BAL, they are helping us get in touch with many of their vendors. Our R&D officials are examining the products made by these local vendors before approving them for exports. We are focussing on a bunch of spares such as suspension systems, lighting systems including blinkers on the tail lamps and many others,” disclosed Nishikawa.

He also revealed that IKM is aiming to achieve a 20 percent market share in the Indian big bike segment which according to him stands at around 400 units per year and is growing in the range of 25-30 percent per annum. The company currently assembles the Ninja 300 and the 650 at BAL’s Akurdi factory. According to the sources at BAL, nearly 10 Ninja models (300 and 650) are assembled per day. The Indian arm of Kawasaki has managed to sell nearly 1500 units of both the Ninja models so far.

In a separate conversation with Autocar Professional, Yuji Horiuchi, managing director, IKM, revealed that the company plans to expand its team size in India as against the current team strength of 30 officials. On the other hand, Nishigawa revealed that the company plans to bring in 1-2 new models (possibly CBUs) in another year from now.

AMIT PANDAY