Suzuki pips BMW as the most profitable automaker

Suzuki has beaten BMW in terms of the highest profit margin in the automotive sector. The Japanese carmaker's margin was 11.8%, which was higher by 0.4% compared to the German carmaker.

An Ernst & Young study shows that Suzuki took the first spot in the latest quarter. According to the report, despite being known to have higher margins than other carmakers, recent events like Dieselgate and the tariff issue between Germany and USA have contributed to lower sales of German-made cars. On the other hand, Suzuki has witnessed growth in China and India leading to higher profits.

As of February 2018, Suzuki's YoY profits have risen by 68%, thanks to high demand for its products in India. The annual operating profit has also increased to US$ 3.3 billion in May. However, both carmakers have seen a drop in annual sales – a 4.8% drop for Suzuki while BMW dropped 2.8%.

Source: Handelsblatt Global via Twitter