As the motorbike industry grows Suzuki matches pace to ensure complete consumer satisfaction.
As the Chief Executive Officer of Rancon Motorbikes Ltd, how are you envisioning to take the company forward?
Beginning my tenure as Chief Executive Officer, I will be upholding the principles that have propelled Suzuki to the leading position it has attained in the motorbike industry. As a responsible brand Suzuki envisions to take the whole motorbike industry towards high standards where it can ensure world-class quality products and services for the consumers.
From the four variants like Cruiser, Sports, Scooter, and Commuter, which has been the most commercially successful. What do you think it says about the commuting needs of the consumers?
Suzuki offers a wide range of motorbikes for serving any kind of demand of the bikers I would say. Suzuki is very successful in all the segments as per the market size of Bangladesh. Also, Suzuki is continuing to expand its product line considering the changing needs and demands of the future.
The commuting needs in our country has seen a rise in the number of motorbikes being purchased. This tells us that consumers need a mode of transportation that offers both speed and efficiency. Apart from just regular commuting demands, Bangladesh is experiencing a rise in the number of people who enjoy touring through scenic terrains, and bikes are the chosen vehicle usually for such activities. Suzuki is perceptible to all its targeted consumers, and we make sure to deliver on the demands of our consumers.
Factors like reduced supplementary duties, increased buying capacity of the middle class, and government initiative to diversify the country’s manufacturing and exports have bolstered the impressive growth in the sector – what more can the sector do to sustain this growth?
I sincerely would like to thank the Bangladesh Government for inspiring manufacturers through effective policies that are greatly contributing to the growth of the industry. The sustainability of these policies is the first factor that would ensure the continuation of high growth. This will also support the manufacturers to invest further towards local value addition. Once the industry reaches a volume of over 1 million per year, many future opportunities will open up.
Around 70% of the component parts used by local manufacturers/assemblers are imported, while only 30% are sourced locally. In order to be competitive in the long run, local manufacturers need to establish local backward linkages by domestically manufacturing the majority of component parts. What is Rancon doing to ensure more components are domestically manufactured?
Just two years ago, Bangladesh was dependent on imports to meet 95 percent of its demand for motorbikes. But the situation has completely reversed. Today, around 96 percent of the two-wheelers plying on the roads are either locally manufactured or assembled. There are firms operating that have made the country almost self-sufficient in motorbike manufacturing or assembly in the fast-growing market.
Rancon Motorbikes is continuously investing in heavy types of machinery and skill development of its people and thereby it’s increasing localization while assuring World-Class Suzuki quality in Bangladesh.
Financial institutions are not keen on providing adequate financing options to potential buyers of motorbikes, how is the industry mitigating this? Are discussions being fostered to encourage financial institutions?
A formal motorbike loan is still unavailable in the Bangladesh market. Every county in the world where the automobile has flourished, the industry has been backed up by very attractive and easy financing facilities for the consumers. This is also very necessary for Bangladesh. I truly expect that the financial institutions would consider the opportunity in this sector and will come up with suitable schemes for the consumers.
Suzuki is undoubtedly a market leader, but how are you tackling the fierce competition posed by Indian brands?
The Motorbike industry is growing rapidly in Bangladesh with lots of future opportunities. Many good brands are available in the market and I consider the competition as a great opportunity for further improvements. Suzuki would like to continue to lead through its strong product quality and excellent customer service.