After USA, Suzuki might now exit China

Back in 2012, Suzuki exited the American market to focus on India and Japan. Now, the company might be looking to move from China as well. It has sold its 46% stake in the joint venture in China to its partner - Jiangxi Changhe Automobile. The move comes amidst falling sales numbers of the Japanese manufacturer in the world's largest car market.

Suzuki has witnessed a decrease in the total cars produced in China over the last couple of years. The company has been caught out by the Chinese government's car policy and has no electric offering in a country that is promoting electric vehicle usage. On the other hand, fellow carmakers like Toyota and Honda have adapted to market trends and are offering autonomous and electrified cars in China. Suzuki has revealed that it would consider electric vehicles for the Chinese and European markets only after introducing them in the Indian market, which it plans to do by 2020.

Further, Suzuki is known for its compact and economical cars. The overall improvement in the standard of living in China and the increasing wealth of citizens is causing a shift from entry level segment to the premium segment, where Suzuki has no products. At present, the Japanese carmaker builds the Vitara compact SUV and a local version of the S-Cross.

Suzuki and its other partner - Chongqing Changan Automobile are in discussions over sales plans and chairman, Osamu Suzuki has revealed that there are no plans to exit China as of now.

The total cars made by Suzuki in China stood at 86,000 units in FY 2017, a decline of 70% compared to the peak levels of 2010. At the same time sales numbers have witnessed a 30% drop compared to the previous year and they stand at 1,00,000 units. This is the third consecutive fall in numbers in recent years. Suzuki's global sales stand at 32,20,000 units, more than half of which are from India.

Source: Nikkei Asia