Suzuki: Expands India business, maintains 50% share of passenger car market

Strengthens partnership with Toyota, advances introduction of electrified models

2018/09/06

Summary
Performance: Global sales volume exceeds 3 million units, maintains over 50% share of India market
Business partnership with Toyota: Promoting electrification in India, mutual supply of vehicles
India business: Gujarat plant expansion, aiming to sell 5 million units per year by 2030
Global production system: Reconsideration of China business, and development of the African market
Electrification: Sequential introduction of hybrid systems for new cars
New models: Adoption of the HEARTECT platform and “Suzuki Safety Support” preventive safety technology
Sales Forecast by LMC Automotive: Suzuki's light vehicle sales to hover 3.2 million units in the medium term

Summary

　Suzuki’s global sales volume in FY 2017 (April 2017 to March 2018) was up by 10.5% to 3.224 million units compared to the previous fiscal year, exceeding 3 million units for the first time. Of this, 1.645 million units were sold in the India market, accounting for 51.3% of Suzuki’s total sales volume. Although its consolidated financial results showed a significant increase in both sales and profitability, going forward Suzuki is forecasting a decrease in profitability as a result of unfavorable exchange rate fluctuations and increased R&D expenditures as it continues to focus on expanding its market share in the passenger car segment in FY 2018.

　In its primary market of India, Maruti Suzuki’s Gujarat plant became operational in February 2017 was already operating at full capacity with 2 shifts (annual production capacity of 250k units) by October of the same year. Maruti Suzuki is currently working to have a second production line operational (250k unit capacity) by January 2019, and is planning for a future third production line (250k unit capacity). Suzuki is also proceeding with its plans to construct its parts procurement system within the state of Gujarat. A new lithium-ion battery plant (which would be India’s first) established by a joint venture between Denso and Toshiba will be located in the supplier’s park adjacent to the Gujarat plant and is expected to supply battery packs to Suzuki’s manufacturing subsidiaries in India.

　In June 2018, Suzuki indicated its sales target of 5 million units per year in the Indian market by 2030, and intends to maintain its current 50% share of the passenger car market. Suzuki’s plans call for doubling its current product lineup from 16 models to 30 models, with EVs accounting for 1.5 million or 30% of those 5 million units.

　Since the announcement of its business partnership with Toyota in October 2016, Suzuki has agreed on the mutual supply of HVs and EVs for the India market. Recently the two companies have started discussions on joint projects such as the development of new powertrain technologies and the development of vehicles for the African market, which will further strengthen their partnership.

　With respect to vehicle electrification, Suzuki will gradually introduce its original hybrid systems on its flagship models, combining its ISG (Integrated Starter Generator, a generator with motor function) and a small 12V Li-ion battery, which is scheduled to be adopted for its electrified powertrains on all models to be sold in Japan in the future. Conversely, Suzuki is advancing the development of hybrid powertrain systems using 48V system technology for European applications.


Source: Reference materials on Financial Results issued by Suzuki Exceeding 3 million units in FY 2017. Sales volume in India accounting for over 50% of the total.	New Swift (Bangkok International Motor Show 2018) Launched as a full model change in 2017. Produced and exported from Japan, India, and Thailand as a global model aimed at expanding sales in various countries and regions.

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