Suzuki: enhances operations in Southeast Asia, Japan and India

Looks to capture 30% of mini vehicle market in Japan

2013/05/22

Summary

Suzuki's new vehicle sales by region In recent years, Suzuki has been enhancing its production and sales businesses in Southeast Asia in addition to Japan and India. Particularly in Thailand and Indonesia, the company is expanding its businesses whereas it is confronting the stagnant European market, significant sales drop in China and discontinuation of businesses in North America.

 In India, the largest market for Suzuki, its new vehicle sales for the fiscal year ended March 2013 increased by 4.4% y/y to 1.05 million units. Strong sales of the new models including the Ertiga and the Swift DZire supported Suzuki's business growth. The company plans to raise its annual production capacity to two million units by 2016 through adding a third line at the Manesar plant and building a new plant in Gujarat state.

 Suzuki's overall sales in Japan for the same fiscal year climbed by 12.7% y/y to 672K units as sales for both mini and non-mini vehicles increased. In the mini vehicle market, though, where the competition has been getting fierce due to the launch of Honda's N BOX, Suzuki's share dropped to 29.7%. The company has adopted the advanced fuel saving technologies for the new Wagon R launched in September 2012. With more fuel efficient models using these technologies, Suzuki aims to increase its mini vehicle sales and acquire a market share of at least 30%.

 In China, Suzuki's sales for the same period plummeted by 14.5% y/y owing to the worsening relationship between Japan and China. While its joint venture, Chongqing Changan Suzuki Automobile, is constructing a second plant, the company will decide when to start operations at the new plant, eyeing the recovery of the demand in the country.

 In the ASEAN region, Suzuki has started operations at its new plant in Thailand in March 2012 to produce the new Swift. The annual production capacity at the plant will be increased to 100K units by 2016. In Indonesia, the company plans to build a new engine plant with a capacity of 100K/year in 2014. Suzuki's annual production capacity of the compact cars in the country will also be raised from the present level of 100K units. Suzuki aims to increase its exports of finished vehicles from Thailand to Indonesia and vice versa.

 Suzuki's global sales for the fiscal year ended March 2013 increased by 3.9% y/y to 2.66 million units. Both the company's net sales and profits improved, reporting a record high net profit of JPY 80.4 billion. For the fiscal year ended March 2014, the company forecasted that its sales would grow to 2.80 million units, up 5.4% y/y. With weaker yen and sales increases in India and Southeast Asia, it aims to realize net sales of JPY 2.8 trillion, an operating profit of JPY 150 billion and a net profit of JPY 90 billion.

 International arbitration regarding cancellation of the comprehensive contract on the capital and business partnership between Volkswagen and Suzuki is still pending as of May 2013

Suzuki's new vehicle sales by region

(1,000 units)
Japan Europe North
America
Asia Others Grand
total
India China ASEAN Others Subtotal
FY ended March 2011 588 244 33 1,133 290 96 106 1,625 153 2,643
FY ended March 2012 596 223 32 1,006 296 121 127 1,550 160 2,560
FY ended March 2013 672 197 30 1,051 253 186 98 1,588 174 2,660
FY ended March 2014 (Plan) 660 220 3 n.a. 1,756 164 2,803

Source: Suzuki's financial results reference/presentation material 2012.5.10/2013.5.9
(Note) Of the sales (186,000 units) in the ASEAN countries for the fiscal year ended March 2013, 139,000 units were sold in Indonesia, 33,000 in Thailand, 7,000 in Malaysia and 7,000 in other countries.



India: Maruti Suzuki's sales increased by 3.3% to 1.17 million for FY ended March 2013 owing to strong sales of new models including Ertiga

 New vehicle total sales (including exports) by Maruti Suzuki, Suzuki's consolidated subsidiary in India, increased by 3.3% y/y to 1.17 million units for the fiscal year ended March 2013. The subsidiary's net sales rose by 22.8% to 426.1 billion rupees and net profit climbed by 46.3% to 23.9 billion rupees, recording its first profit growth in three years. While Maruti's Manesar plant suspended production for a month due to the riot in the summer of 2012, it had a limited effect on the business results as the plant improved its productivity and produced enough vehicles in the latter half of the fiscal year. On the other hand, new models launched in 2012 including the Ertiga, Swift DZire and Swift have enjoyed strong sales. Increased sales of higher priced new models and cost reduction efforts resulted in an improvement in Maruti's business performance.

 Growth of the Indian automobile market has been slowing down due to the stagnant economic conditions and high interest rate policy to control inflation for recent years (The interest rate set by the Reserve Bank of India is 7.25% as of early May 2013). Accordingly, Maruti Suzuki's sales for the Mini segment targeting low-income consumers including Maruti800 declined by 12.6% y/y to 430K units. In contrast, those for the Utility Vehicle segment into which Maruti launched the Ertiga rose more than ten times to nearly 80K units.

Maruti Suzuki's business results

(Units, 1 million rupees)
FY ended
March
2006
FY ended
March
2007
FY ended
March
2008
FY ended
March
2009
FY ended
March
2010
FY ended
March
2011
FY ended
March
2012
FY ended
March
2013
Sales volume
India
Exports
561,822
527,038
34,784
674,924
635,629
39,295
764,842
711,818
53,024
792,167
722,144
70,023
1,018,365
870,790
147,575
1,271,005
1,132,739
138,266
1,133,695
1,006,316
127,379
1,171,434
1,051,046
120,388
Net sales
Net profit
Net profit ratio
120,034
11,891
9.9%
145,922
15,620
10.7%
178,603
17,308
9.7%
203,583
12,187
6.0%
289,585
24,976
8.6%
358,490
22,887
6.4%
347,059
16,351
4.7%
426,125
23,921
5.6%

Source: Maruti Suzuki Quarterly Report Q4 2012-13, Monthly Sales, Press Release 2013.4.26
(Note) The exchange rate of the Indian rupee against the Japanese yen is 1.85 yen as of early May 2013.

 

India: Violence at Manesar plant

 Manesar plant had suspended its operations from July 21 to August 20, 2012 due to the violence caused by some workers. After a group of people who were assumed to lead the riot were arrested, the plant reopened on August 21. By the autumn of 2012, the plant returned to regular operations with two shifts and has been producing 1,800 units/day at a higher rate over the period before the incident. Increased production in the latter half of the year more than offset the drop in the first half. Since the background of the incident has yet to be clarified, Suzuki says that it requires more channels to communicate with the workers.

 

Maruti Suzuki's sales by segment

(Units)
Segment Model FY ended
March
2011
FY ended
March
2012
FY ended
March
2013
A: Mini M800, A-Star, Alto, Wagon-R 573,238 491,389 429,569
A: Compact Swift, Estilo, Ritz 261,799 235,754 255,302
A: Super Compact Dzire 107,955 110,132 169,571
A: Mid-Size SX4 23,317 17,997 6,707
A: Executive Kizashi 138 458 188
Total A: Passenger Cars 966,447 855,730 861,337
B: Utility Vehicles Gypsy, Grand Vitara, Ertiga 5,666 6,525 79,192
C: Vans Omni, Eeco 160,626 144,061 110,517
Total sales in India 1,132,739 1,006,316 1,051,046
(Reference) Indian passenger vehicle market 2,501,542 2,629,839 2,686,429
Exports 138,266 127,379 120,388
Grand total sales 1,271,005 1,133,695 1,171,434
Source: Maruti Suzuki Press Release 2012.4.2/2013.4.2
(Note) 1. Sales by segment based on the new segmentation method for passenger vehicles adopted by SIAM in July 2011. Passenger Vehicles include Passenger Cars, Utility Vehicles and Vans.
2. The Ertiga is an MPV launched in April 2012.

 

Suzuki's new models launched in India (2012-2013)

Launch Outline
New
Swift DZire
February 2012  The new Swift DZire is a compact sedan based on the same platform of the new Swift launched in August 2011. The model comes with a 1.3-liter diesel engine/1.2-liter petrol engine adopting a VVT system for the intake valve. An automatic transmission is now available with a petrol model. The sedan has been produced at the Manesar plant. The price in Delhi ranges from 479,000 to 619,000 rupees for a petrol model and from 580,000 to 709,000 rupees for a diesel model.
Ertiga April 2012  This is a three-row seven-seater compact MPV developed in Japan primarily for the Indian market. The model is equipped with a 1.4-liter petrol/1.3-liter diesel engine. With this model, Maruti Suzuki has made a full-scale entry into the Utility Vehicle segment. The company has also created a new segment of "a compact three-row vehicle" which offers space and comfort in a compact body with a small engine. The model has been produced at the Gurgaon plant. The price in Delhi ranges from 589,000 to 730,000 rupees for a petrol model and from 730,000 to 854,000 rupees for a diesel model.
New Alto 800 October 2012  The new compact hatchback has been produced at the Gurgaon plant. The model comes with a three-cylinder 0.8-liter petrol/CNG engine mated with a five-speed manual transmission. The mileage has improved by 15% for a petrol version and by 13% for a CNG version over a previous model. The new Alto 800 mainly targets young customers who are considering the purchase of their first cars. The model not only has been sold in India but exported to Latin America and Africa since January 2013. The price in Delhi ranges from 244,000 to 299,000 rupees for a petrol model and from 319,000 to 356,000 rupees for a CNG model.
New SX4
(Facelifted)
March 2013  This is a facelifted model of a mid-size sedan. With refreshed exterior and interior, the model also improved its fuel efficiency. It comes with a 1.3-liter diesel turbo/1.6-liter VVT petrol engine. A CNG version is now available. Optional features include a touch-screen audio/navigation system for the first time for a Maruti Suzuki model. The price in Delhi, which was unchanged from the previous model, ranges from 738,000 to 884,000 rupees for a petrol version and from 827,000 to 979,000 rupees for a diesel version,

 

Maruti Suzuki to increase annual production capacity to two million in 2015-2016

 Maruti Suzuki plans to start operations of the third line at the Manesar plant in mid 2013 and of a new plant in Gujarat state in 2015-2016. After they start running, the company's annual production capacity will expand to two million units from the current level of 1.5 million units. Construction of a research and development center, which will be on par with Suzuki's research facility in Japan, has also begun in India.

India: Maruti Suzuki to boost production capacity and to construct an R&D center

Third line at
Manesar plant
 Maruti Suzuki is in need of a renewal of the aged building of the Gurgaon plant and considering its relocation since the efficiency of production and logistics has been worsening with the urbanization of the neighboring area. For this reason, the Manesar plant is also enhancing its production capacity by starting operations of the third assembly line with a capacity of 250K units/year by mid 2013.
New Mehsana plant  In June 2012, Maruti Suzuki and the Gujarat state government in western India signed an agreement regarding Maruti's purchase of the land of approximately 2.8 million square meters for a new automobile assembly plant. The location of the land is suited for Maruti's production and export hub as it is 100 km away from Ahmedabad, the largest city in Gujarat and 300 km away from the Mundra port, a major exporting port in the state. The new plant will start operations in 2015-2016 with an initial capacity of 250K units. The overall investment is expected to be 40 billion rupees. After the new plant starts running, Maruti Suzuki's production capacity will rise to two million units/year including 900K units at the Gurgaon plant and 850K units at the Manesar plant.
R&D Center  Maruti Suzuki has laid the foundation stone for its Research and Development Center in Rohtak, Haryana in April 2012. With a total investment of 20-24 billion rupees, the company plans to construct an R&D Center and Proving Ground on the site of 600 acres (approximately 2,428,000 square meters). The facility will be a base for developing new models for India. Its equipment is on par with that of Suzuki's research facility in Japan so that the Center in Rohtak is expected to complement the R&D function in case the Japanese facility is damaged by a disaster.

 

 



Japanese market: Suzuki's mini vehicle sales increased by 13.7% but its market share dropped to 29.7% for FY ended March 2013

 Suzuki's new vehicle sales in Japan for the fiscal year ended March 2013 increased by 12.7% y/y to 672K units. While its non-mini vehicle sales rose by 6.3% y/y with strong sales of the Swift, mini vehicle sales were up over the previous year for the first time in seven years as the sales of all current models improved. Nonetheless, its share in the mini vehicle market decreased from 30.5% to 29.7% due to intensifying competition.

 Suzuki plans to adopt the next-generation eco-friendly technology used in the new Wagon R in other models and aims to acquire a 30% share in mini vehicle market with more fuel efficient models. The company forecasts that its mini vehicle sales for the fiscal year ended March 2014 will be 580K units while it assumes that the industry volume for mini vehicles will decrease by 7% y/y to 1.8 million units.

 In Japan, Sagara plant, located close to the Hamaoka nuclear plant, used to produce small cars including those for export as well as all automobile engines for Japan. Suzuki decided to transfer a part of production of engines for mini vehicles to the Kosai plant to reduce potential damages by earthquakes or nuclear accidents.

Suzuki's new vehicle sales in Japan

(1,000 units)
FY ended
March
2007
FY ended
March
2008
FY ended
March
2009
FY ended
March
2010
FY ended
March
2011
FY ended
March
2012
FY ended
March
2013
FY ended
March
2014
(Plan)
Mini vehicles 606 587 579 554 521 516 586 580
Non-mini vehicles 85 86 85 67 68 80 85 80
Japan total 690 673 665 622 588 596 672 660

Source: Suzuki's financial results reference material 2012.5.10, Press Release 2013.4.24

 

Suzuki: introduction of new models in Japan (2012-2013)

Model Launch Outline
New Wagon R September 2012  This new mini wagon is the first model developed using "Suzuki Green Technology," Suzuki's next-generation eco-friendly technology. Realizing low fuel consumption by adopting the advanced fuel saving technologies (see the table below), weight reduction up to 70 kg, improved powertrain efficiency and friction reduction of various parts, the mileage for a naturally-aspirated engine model (2WD) is 28.8 km/liter, up 22% over the previous model. The monthly sales target is set at 16,000 units.
Spacia February 2013  The Palette, a tall wagon-type mini vehicle, was redesigned and renamed the Spacia. The model was developed with the concept: "roomy and convenient, lightweight and fuel-efficient tall wagon-type model," targeted primarily toward young mothers with small children. It has a cabin length of 2,215 mm with adoption of a new long wheelbase platform. Reducing 90 kg of vehicle weight and employing "Suzuki Green Technology," its mileage is 29.0 km/liter, the most fuel efficient for its segment. The monthly sales target is set at 7,000 units.
Alto Eco
(Facelifted)
March 2013  The facelifted Alto Eco adopted "Suzuki Green Technology" including an energy regeneration system. Reducing 20 kg of vehicle weight, its mileage was improved to 33 km/liter for a 2WD model, the most fuel efficient for a petrol engine car.
(Note) 1. Mazda decided to procure the Spacia in place of the Pallet from Suzuki on an OEM basis on the occasion of remodeling of the Palette and launched it as the all new Flair Wagon in April 2013.
2. Nissan will terminate the procurement of the Palette from Suzuki on an OEM basis on the occasion of remodeling of the Palette. While Nissan's Roox has been based on the Palette, its successor, which will go on sale in 2014, will be developed jointly with Mitsubishi Motors.

 

Fuel saving technologies among the "Suzuki Green Technology" adopted by the new Wagon R
Ene-Charge
(energy charge)
 This is Suzuki's deceleration energy regeneration system using an efficient lithium-ion battery (jointly developed with Toshiba) and an efficient and powerful alternator in addition to an existing lead battery for a vehicle equipped with a start/stop system. The Ene-Charge system stores electricity for operating onboard electric equipment, and thereby, it helps to reduce power generation during driving.
New start/stop
system
 The new start/stop system starts cutting the fuel supply when the accelerator is released and turns off the engine at 13 km/h or less during deceleration. (The former system turns off the engine at 9 km/h or less).
Eco-Cool  When the air conditioner stops during the engine shutdown, the Eco-Cool system provides cool air into the cabin through the cold storage material installed in the air-conditioning unit. By preventing the interior temperature from rising, it allows the engine shutdown time to extend.

 

Suzuki builds a production line for new engines at Kosai plant

 Suzuki transferred a part of production of the engines for mini vehicles from the Sagara plant (Makinohara city, Shizuoka) to the Kosai plant (Kosai city, Shizuoka) during the fiscal year ended March 2013 to reduce potential damages by earthquakes or nuclear accidents. It was reported that the Kosai plant has now a capacity of 400K units/year of engines by adding a new production line for newly-developed engines with a capacity of 300K units/year. Along with the increase of production on the new line at the Kosai plant, production of the conventional engines at Sagara plant will be reduced.

 

 



Asian Market: sales declines in China; production capacities enhanced in Thailand and Indonesia

China: sales for FY ended March 2013 drops; operation of Changan Suzuki's second plant may be rescheduled

Worsened relations between Japan and China  Suzuki's new vehicle sales in China for the fiscal year ended March 2013 declined by 14.5% y/y. This was because sales of Japanese vehicles fell due to deteriorating relations between Japan and China over the territorial disputes.
Changan Suzuki's second plant  Chongqing Changan Suzuki Automobile, Suzuki's joint venture in China, had a groundbreaking ceremony for its second plant in Chongqing city in April 2012. Suzuki had announced that it would start operations at the second plant with an annual capacity of 150K units by December 2013, and by boosting the capacity to 250K units, it would build a total production capacity of 500K units/year in China. However, experiencing the sales decline owing to worsened relations between two countries, Suzuki said, in February 2013, that it would wait for the recovery in demand in China and then, would decide when to start running the plant.
Enhancement of engine production at Changhe Suzuki  In October 2012, Changhe Suzuki, Suzuki's another joint venture in China, decided to increase its production capacity of engines by 150K units at its plant in Jiujiang, Jiangxi Province. With an investment of RMB 168 million, expansion of the plant will be completed by the end of 2013. The plant plans to produce K12 Series engines as well as K14 Series engines for compact cars including the Wagon R and the Liana.
New model launch plan  Suzuki 's concept model of a C-segment sedan "Authentics" made its world premiere at the Shanghai International Automobile Industry Exhibition held in April 2013. The company plans to produce and sell the production model based on the Authentics by the end of 2014 at Chongqing Changan Suzuki Automobile. Suzuki also aims to expand its market share in China by launching the Chinese version of the SX4 S-Cross, a C-segment crossover, which will be produced at the same joint venture from the end of 2013.

 

Thailand: Suzuki starts production of the new Swift eco-car and importing the Ertiga MPV from Indonesia

Production of the new Swift  In March 2012, Suzuki began operations of its first automobile plant (Rayong province) in Thailand and started production and sales of the new Swift, a compact hatchback, which conforms to the eco-car project promoted by the Thai government. The model comes with a 1.2-liter petrol engine and achieved a mileage of 22km/liter. Due to its strong sales, Suzuki started two-shift operations at its Rayong plant from October 2012 ahead of the initial plan. Production of the new Swift in 2012 was increased from 15K units to 21K units (17K units were sold in Thailand and 4K units were exported to the ASEAN countries.) In 2013, Suzuki plans to produce 54K units of the model.
Import of the Ertiga  Suzuki launched the Ertiga, a three-row seven-seater compact MPV, in Thailand in March 2013. Recently in Thailand, the demand for compact cars and MPVs is increasing. In order to expand its lineup, Suzuki decided to import the Ertiga which is being produced in Indonesia with an initial sales target of 6K units/year. The Ertiga, which was already launched into India and Indonesia, has been contributing to Suzuki's increased sales for its spacious and comfortable cabin in a compact body.

 

Indonesia: production and sales of the Ertiga MPV, launch of the new Swift and building a new engine plant

Production and sales of the Ertiga  In April 2012, Suzuki announced that it launched the Ertiga, a three-row seven-seater compact MPV, into Indonesia. The Ertiga is a strategic compact car which was also launched in India in the same month. The Indonesian version is powered by a 1.4-liter petrol engine and has been produced at the Tambun plant with targeted annual sales of 50K units. Suzuki also supplies approximately 10K units of the Ertiga to Mazda on an OEM basis in Indonesia.
Import of the new Swift  In September 2012, Suzuki launched the redesigned Swift hatchback into Indonesia. The model comes with a 1.4-liter petrol engine mated with a five-speed MT or four-speed AT. While the former model had been produced at the Tambun plant since 2007, the new Swift is imported from Thailand.
Building a new engine plant  In January 2012, Suzuki announced that it would build a new automobile engine plant in Indonesia. The company acquired a 1.3 million-square meter plot of land for JPY 10 billion in the industrial zone located to the east of Jakarta. It plans to construct an engine plant which has facilities to manufacture forged, cast and aluminum die-cast parts. The new plant is scheduled to start operations in mid-2014 with an annual capacity of 100K units. With this, Suzuki's production capacity of engines in Indonesia will be boosted to 150K units/year.

 

Vietnam: Suzuki holds a groundbreaking ceremony for a new automobile plant

 In April 2012, Suzuki held a groundbreaking ceremony for a new automobile plant in Vietnam. While the company has been producing vehicles at its plant in the Binh Da Techno Park in Dong Nai province since 1996, it decided to move its current plant and build a new one in the Long Binh Techno Park to meet the expanding vehicle market. The new plant is scheduled to start operations in mid-2013. Its annual capacity for the first year is 5K units and will be raised thereafter. Suzuki had produced 2,618 vehicles including the Super Carry (van and truck) and the APV (minivan) in Vietnam for the fiscal year ended March 2012.

 

Myanmar: Suzuki resumes automobile production after three years/span>

 In February 2013, Suzuki announced that it would resume automobile production in Myanmar after three years. While Suzuki's joint venture had been dealing with production and sales of vehicles since 1999, it suspended its business when the joint-venture contract expired in 2010. Recently Suzuki was approved by the Myanmar government for the establishment of a new company, Suzuki Myanmar Motor, with a capital of USD 7 million fully funded by Suzuki. The new company is scheduled to assemble 100 units of the Carry compact truck per month on a knock-down basis at the existing plant in Yangon starting in May 2013.

 

 



Suzuki discontinues automobile business in the US while aiming to regain profitability by launching new models in Europe

US: Suzuki stops selling cars

 In November 2012, Suzuki announced that American Suzuki Motor Corporation, Suzuki's wholly-owned subsidiary which distributes Suzuki's products in the U.S., would file for Chapter 11 bankruptcy protection as a way to restructure its operations. The subsidiary will discontinue automobile sales to focus on its motorcycle and marine products businesses in the country. Considering serious challenges such as unfavorable foreign exchange rates and low sales volumes, Suzuki determined that it would be unable to maintain profitability with its automobile business. Suzuki's automobile parts and services will be provided to consumers without interruption in the U.S. The automaker plans to concentrate its resources on its main markets including India and Southeast Asian countries.

 

Europe: Suzuki to launch the new SX4, its first C-segment crossover

 In Europe where economy remains stagnant, Suzuki recorded operating loss with declined sales for the fiscal year ended March 2013. Nevertheless, Suzuki plans to regain profitability by launching new models. In the autumn of 2013, the company will release the new SX4, its first C-segment crossover, in Europe. This is a production model based on the concept S-Cross exhibited at the Paris Motor Show held in September 2012. It comes with a 1.6-liter petrol or diesel engine and will be built at the Magyar Suzuki plant in Hungary for exporting to countries in and outside Europe.

(Note) In Japan, Suzuki is producing the current SX4 at the Sagara plant in Shizuoka prefecture. The model used to be a leading product for the U.S. market. As Suzuki decided to discontinue automobile business in the U.S. in November 2012, a successor model of the SX4 will not be built in Japan.

 

 



Sales outlook for FY ended March 2014: global sales will rise to 2.8 million with increased sales in India and Southeast Asia

 Suzuki's global sales for the fiscal year ended March 2013 rose by 3.9% y/y to 2.66 million units. Domestic sales in Japan grew with increased sales of mini vehicles thanks to the government subsidy program for purchasing eco cars while overseas sales increased slightly by offsetting the declined sales in China with the expansion of the ASEAN countries sales.

 Suzuki predicted that its global sales for the fiscal year ended March 2014 would rise to 2.803 million units, up 5.4% y/y. Although domestic sales in Japan are expected to drop because the incentive project was over, overseas sales will increase by 150K units mainly in India and Southeast Asian markets.

 Suzuki's global production for the fiscal year ended March 2013 reached a record high of 2.878 million units, up 2.7% y/y, with increases in both domestic and overseas production. Overseas production accounted for 64% of the total production.

 According to Suzuki's forecast for the fiscal year ended March 2014, domestic production in Japan is expected to decline due to decreased volumes of exports and vehicles for supplying to other companies on an OEM basis. In contrast, overseas production will climb with increased production in Europe and Asia. The ratio of overseas production is assumed to rise to 68%.

Suzuki's new vehicle sales

(Units)
FY ended
March
2007
FY ended
March
2008
FY ended
March
2009
FY ended
March
2010
FY ended
March
2011
FY ended
March
2012
FY ended
March
2013
FY ended
March
2014
(plan)
Japan 690,668 673,259 664,880 622,000 588,000 596,000 671,823 660,000
Overseas 1,530,958 1,732,490 1,641,176 1,727,000 2,055,000 1,964,000 1,988,541 2,143,000
Global 2,221,626 2,405,749 2,306,056 2,349,000 2,643,000 2,560,000 2,660,364 2,803,000
Source: Suzuki's financial results reference material 2012.5.10/2013.5.9, Press Release 2013.4.24
(Note) 1. The figures show the sales volume of Suzuki brand vehicles (including some licensed vehicles). The plan for FY ended March 2014 was announced in May 2013.
2. Overseas sales for FY ended March 2013 include some estimates.

 

Suzuki's production volume

(1,000 units)
FY
ended
March
2007
FY
ended
March
2008
FY
ended
March
2009
FY
ended
March
2010
FY
ended
March
2011
FY
ended
March
2012
FY
ended
March
2013
FY
ended
March
2014
(plan)
Japan For Japan Mini 608 588 590 545 513 519 593 595
Non-mini 83 82 79 58 63 76 86 75
Exports 388 415 331 219 259 244 184 150
Vehicles under OEM agreement 134 134 139 138 159 181 182 123
Domestic production 1,212 1,219 1,139 959 994 1,020 1,044 943
Overseas Europe 189 252 260 180 164 174 151 176
North America 22 28 7 1 - - - -
Asia 987 1,138 1,088 1,406 1,720 1,609 1,683 1,847
Overseas production 1,199 1,418 1,355 1,586 1,884 1,782 1,834 2,025
Global production 2,412 2,637 2,494 2,545 2,878 2,802 2,878 2,968

Source: Suzuki's financial results reference material 2012.5.10/2013.5.9
(Note) Production in Japan consists of the figures of completed vehicles and CKD units. Overseas production represents the number of vehicles leaving the production lines in the countries outside Japan and does not include units assembled on a knock-down basis.

 

 



Business outlook for FY ended March 2014: operating profit will grow by JPY 5.4 billion to JPY 150 billion due to weaker yen and growth of Asian market

 In Suzuki's consolidated results for the fiscal year ended March 2013, its consolidated net sales climbed to JPY 2,573.8 billion, up 2.6% y/y. Net sales in Japan increased by 5.5% while overseas net sales rose only by 0.8%. Operating profit improved by JPY 25.3 billion to JPY 144.6 billion as increased profits owing to automobile sales growth in Japan and Asia and cost reduction more than offset declined profits caused by stronger yen and decreased demand in Europe. Net profit reached a record high of JPY 80.4 billion after absorbing an extraordinary loss due to discontinuation of the automobile business in the U.S.

 For the fiscal year ended March 2014, Suzuki aims to have net sales of JPY 2,800 billion, operating profit of JPY 150 billion and net profit of JPY 90 billion. The company's improved results will be supported by weaker yen against not only the U.S. dollar but also the Indian rupee and sales increase in the growth markets such as India and Southeast Asia.

Suzuki's consolidated business results

(1 million yen)
FY ended
March
2007
FY ended
March
2008
FY ended
March
2009
FY ended
March
2010
FY ended
March
2011
FY ended
March
2012
FY ended
March
2013
FY ended
March
2014
(plan)
Net sales
Japan
Overseas
3,163,669
973,500
2,190,200
3,502,419
981,400
2,521,000
3,004,888
965,500
2,039,300
2,469,063
952,559
1,516,504
2,608,217
937,452
1,670,765
2,512,186
986,774
1,525,411
2,578,317
1,040,948
1,537,369
2,800,000
980,000
1,820,000
Operating profit
Ordinary profit
Net profit
132,900
139,183
75,008
149,405
156,904
80,254
76,926
79,675
27,429
79,368
93,841
28,913
106,934
122,502
45,174
119,304
130,553
53,887
144,564
155,593
80,389
150,000
165,000
90,000
Capital expenditure
Depreciation
R & D costs
207,400
149,900
92,100
243,600
161,600
108,700
216,200
141,200
115,000
120,200
141,800
108,800
130,300
138,400
104,100
126,700
103,100
109,800
169,300
93,700
119,300
270,000
115,000
130,000
Number of employees 45,510 50,241 50,613 51,503 52,731 54,484 55,948
Forex (US$) 117 yen 114 yen 101 yen 93 yen 86 yen 79 yen 83 yen 90 yen
Forex (Euro) 151 yen 160 yen 144 yen 131 yen 113 yen 109 yen 107 yen 120 yen
Forex (Rupee) (Unpublished) 1.68 yen 1.54 yen 1.70 yen

Source: Suzuki's financial results 2012.5.10/2013.5.9, financial results reference material 2012.5.10/2013.5.9
(Note) The plan for FY ended March 2014 was announced in May 2013.

 

Factors for operating profit fluctuations

(100 million yen)
Gain/Loss Expenses Cost
reduction
R & D
costs
Volume
& mix
Exchange
rate
Depreciation
cost
FY ended March 2012 124 433 226 (57) (542) (289) 353
FY ended March 2013 253 (288) 284 (95) 327 (69) 94
FY ended March 2014 (Plan) 54 (200) 280 (110) 34 260 (210)

Source: Suzuki's financial results presentation material 2012.5.10/2013.5.9


Source: Suzuki and Maruti Suzuki's press releases, various media reports

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