Maruti Udyog Ltd, 54.2 per cent of whose equity is owned by Suzuki Motor Corp of Japan, has said no to its dealers selling two-wheelers of Suzuki Motorcycles India, in which SMC holds 74 per cent equity.
At the launch of SMI's motorcycles in January this year, its managing director Satya Sheel had said he would look to sell Suzuki's two-wheelers through Maruti's dealer outlets.
"We will look to use Maruti's communication and dealer network. We are both Suzuki companies," he had said.
According to a Maruti executive, the company has said no to that. However, there are some dealers of Maruti which also own two-wheeler outlets affiliated to other manufacturers and some of them may opt for Suzuki. Some may also open new outlets devoted to Suzuki's two-wheelers.
The sale of SMI's products through Maruti's dealers could have given a boost to Suzuki's motorcycles, which are now riding into a market dominated by Hero Honda, Bajaj Auto and TVS. The three together have over 90 per cent share of the motorcycle market in India.
