Suzuki focuses on India; 2019 sales targeting 3.4 million

Minicars, compacts and SUVs are Suzuki's strategic segments

2015/09/10

Summary

SUZUKI NEXT 100: new mid-term management plan
  1. Emphasize India and Japan as main markets and develop Indonesia and Thailand as production base
  2. Focus on minicars, Segment-A, B, C cars and Small Utility Vehicles (SUV)
  3. Consolidate platforms and engines


・ Suzuki Motor Co., Ltd. announced in June 2015 “SUZUKI NEXT 100,” its new mid-term management plan through the fiscal year ending in March 2020 (FY 2019).

・ It anticipates that in the global automobile market, demand for small cars from minicars, Segment-A, B, C cars and SUVs will expand and that India will grow into the world’s third largest automobile market.


・ As LMC Automotive Limited predicts, Suzuki’s sales in India are expected to account for a half of its sales in the future. Suzuki has a sense of danger in solely depending on the Indian market.

・ Fiercer competition in the Japanese minicar market is compressing Suzuki’s profit.

・ In Thai and Indonesian markets, Suzuki’s third pillar after Japan and India, business is slowing down.

・ In India, Suzuki’s market share is picking up. Construction of the new plant to be operational in 2017 started and the new luxury sales channel has been launched. The OEM is implementing such measures to achieve two million unit sales in India in 2020. Success in India is a key for the mid-term management plan.


・ When announcing the mid-term management plan, the OEM also revealed that Chairman & CE0 Osamu Suzuki, who has led the automaker for about forty years, would pass over the presidency to his eldest son, Mr. Toshihiro Suzuki and that the OEM will move the mid-term plan forward through the collective leadership.

・ On August 30, 2015, Suzuki announced cancellation of the alliance with Volkswagen AG (VW). In September 2011, it demanded VW to dissolve the capital and business alliance concluded in 2009. As VW did not respond to the request, Suzuki filed the arbitration with the International Court of Arbitration of the International Chamber of Commerce in November 2011. Suzuki received an arbitration award including termination of the agreement and VW’s disposal of its 19.9% shares in Suzuki. Suzuki’s breaches of the agreement were also upheld and that the amount of damages, if any, would be addressed in the future arbitration.

Business targets in the midterm plan

FY 2014
Results
FY 2015
Plans
FY 2019
Targets
Suzuki's unit sales by region
Consolidated
net sales
JPY 3,015.5 billion JPY 3,100 billion JPY 3,700 billion
Operating
income margin
6.0% 6.1% 7.0%
R&D Expenses JPY 125.9 billion JPY 130 billion JPY 200 billion
Capital
Expenditures
JPY 194.5 billion Five-year cumulative
amount of JPY 1 trillion
(FY 2015 forecast:
JPY 180 billion)


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Suzuki: Radar Brake Support available on commercial mini vehicles (Apr. 2015)