Suzuki vehicles are one of the best selling vehicles in Nepal. Many purchase these vehicles because they are affordable and fuel efficient. The Kathmandu Post talked to Shashank Srivastava , executive director, International Marketing and Product Planning, Maruti Suzuki India Limited, about the company’s performance in Nepal and its new plans. Excerpts:

How important is Nepali market for Suzuki? 

Suzuki sold about 2.7 million cars worldwide. Our sales in Nepal hovered around 7,500 units. That figure looks small because Nepali market is small in comparison to large markets like India, Japan or Indonesia. Despite this, sales of Suzuki cars have been growing in Nepal. This is the reason why Nepal is a very important market for us. Suzuki is the number one auto seller in South Asia, as well as in Nepal. Our market share in Nepal currently stands at 35 percent. 

What are Suzuki’s sales strategies?

Suzuki vehicles are available in three segments in Nepal: passenger, which includes micro and compact, van and utility vehicle (UV). Sales of passenger vehicles contribute to around 52 percent of our sales in Nepal. Utility vehicles add another 40 percent to our sales and vans make a contribution of around 8 percent. We command a market share of around 45 percent in Nepal’s total passenger car segment. Some of our cars that are widely preferred are Baleno, Swift and Celerio. Eeco and Omni are quite popular in the compact segment.

The competition is quite tough in Nepal’s auto market. How is Suzuki planning to raise its sales here?

Competition has been there for quite a long time. However, we are growing in a steady manner. New products launched by other carmakers definitely pose a challenge to us. That is the reason why we have introduced new models of cars such as Baleno and Swift. Because of these reasons, our sales in Nepal have gone up by almost 72 percent in the last four years. 

Is Suzuki introducing any new model of vehicle in Nepal in the coming days? 

I cannot reveal the names, but I can tell you that we will be introducing three new products in the Nepali market this year. We will continue to introduce new products in the future as well. Next year, we will also expand our network in Nepal. We are also making efforts to improve our systems and processes to better serve our clients. 

Do you think introduction of new models of cars alone can boost sales?

Of course! Earlier, our market share in UV segment was very small. When Brezza was launched, we immediately captured 8-9 percent of the market share. Similarly, Baleno and Brezza contributed to around 30 percent of total sales last year.

How is Suzuki performing after the central bank tightened credit flow towards the auto sector?

Nepal’s car market has been continuously growing in the last few years. In the Indian fiscal year 2013-14, sales topped 10,000 units in Nepal. In 2014-15, sales hit 11,500. This number surged to 13,000 in 2015-16. In the last Indian fiscal year, sales of cars in Nepal topped 24,000 units. However, in April and May, sales have gone down because of some kind of financial restriction. But if you look at the history of last ten years, the car market has grown significantly.

What kind of challenges do you face in Nepal?

We face different kinds of challenges in different markets. Two years ago, for instances, car sales plunged in the aftermath of the devastating earthquakes. Then there was a fuel crisis due to problems in Nepal-India border points. Sometimes problems that are not related to the automobile sector also affect sales of vehicles. Like, this time, it is about very tough norms regarding bank financing. This is now the new challenge for us. Otherwise, Nepali market has been very good to us. And we are very happy with our progress here.

What are the features of Suzuki that attract Nepali customers?

It is not just about a specific product but about the brand. Customers choose automobiles based on many things. Our biggest advantage is our large network. We have 94 touch points, whereas our competitors only have around 30. Network is a very big advantage. Our cars are also fuel efficient and our portfolio is very closely aligned with customers of Nepal. Also, we do not only focus on selling products, but satisfying customers as well.