After the shock the Japanese car maker made in 2012 to move out of the U.S market, Suzuki Motor now makes another big turn to give up on China. The car maker liquefies 50% stake in Changan Suzuki. All this stake will be transferred to Chongqing Changan Automobile.
Suzuki Motor reasons that it is the shift of Chinese customers’ interest. According to Bloomberg, they are keener on SUVs and larger sedans.
Suzuki Motor's leaving the Chinese market
The Japanese company’s decision still allows Changan to continue manufacturing Suzuki-batched cars in the Chinese market under a license.
It would be a bitter pill to swallow as Suzuki has been in the world’s most populated country for 25 years. But it’s also worth mentioning that the company had even left America after 30 years in the country.
Leaving China, the Japanese car maker now reinforces its influence in its most successful market, India, where every two units sold out, there’s one Suzuki.
Not like India that witnesses predominant interest in small and mid-sized cars, Suzuki’s market share in China drowned sharply to 6.7% in 2017 from 35% in 2003.
Suzuki has been in China for 25 years but the customers' shift to SUV interest forces to leave
The Japanese company’s decision still allows Changan to continue manufacturing Suzuki-batched cars in China
The company has tried to work it out with the launches of the S-Cross SUVs as well as the Vitara but none of them seemed to do wonders
The LMC Automotive reported Suzuki sold over 260k vehicles in the Chinese market in 2014 but last year it dropped to only 119k units.
Bloomberg Intelligence’s figures show Suzuki Changan’s Sales decreased 27% last year. The company has tried to work it out with the launches of the S-Cross SUVs as well as the Vitara but none of them seemed to do wonders.
In spite of the gloom and doom prospects, Changan promises to support Changan Suzuki’s business in China, which includes rolling out Suzuki-batched vehicles and offering pertinent services.
Leaving China, the Japanese car maker now reinforces its influence in its most successful market, India
Bloomberg Intelligence’s figures show Suzuki Changan’s Sales decreased 27% last year
SUVs have been more preferrable in China in recent years
From this moment on, Suzuki Motor focuses more on perking up the sales figures in its most promising market, India. According to the latest car news, President Toshihiro Suzuki aims at the mark of 5 million vehicles sold each year by 2030 and hatches a plan to pull up the line-up to 30 Suzuki models in the process.