Suzuki Motor Corporation has unveiled a new mid-term business plan, focusing on restructuring its operations in India—its most crucial market—to drive growth. The company aims to secure a 50% market share in the country’s four-wheel segment by expanding its product lineup and strengthening its sales network. Additionally, Suzuki plans to increase production capacity to 4 million units annually to meet domestic demand and support exports.

At a press conference on the 20th, Suzuki President Toshihiro Suzuki stated, "We will support India's development through customer-centric product development, reliable vehicle supply, and an enhanced sales network."

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India serves as Suzuki’s primary growth driver, accounting for more than half of its global four-wheel vehicle sales. However, due to increasing competition and the industry’s shift toward electrification, Suzuki’s market share in India has declined from 47.7% in fiscal 2020 to 41.6% in fiscal 2023. This trend has prompted the company to reassess its business strategy.

Key Strategy: Expanding Product Appeal

To regain market share, Suzuki is focusing on diversifying its product range. While the company has a strong presence in the compact car segment, it intends to expand its SUV lineup, which currently has a smaller market share. Additionally, the company plans to introduce entry-level models at an early stage to attract a broader customer base.

Suzuki is also strengthening its research and development capabilities at its local subsidiary, Maruti Suzuki India, while reinforcing its supply chain and production capacity. From the 2 trillion yen capital investment outlined in its new mid-term plan, 1.2 trillion yen will be allocated toward the construction of new factories and the launch of new models in India. "We will scale up production to 4 million units per year at the right time, based on market conditions," President Suzuki stated.

Reducing Dependence on India: Expanding into New Growth Markets

Despite India’s importance, Suzuki acknowledges that over-reliance on a single market poses a management risk. "We need to reduce our dependence on one country," President Suzuki remarked, highlighting the urgency of expanding into new growth markets.

The Middle East and Africa have emerged as promising markets due to their proximity to India, similar road conditions, and rising demand for compact cars driven by population growth and increasing female workforce participation. Suzuki aims to cater to these markets by leveraging India-based production.

"We will enhance our Indian product lineup and maximize its global potential," President Suzuki emphasized. The real challenge, however, lies in effectively translating India's strengths into a globally competitive strategy.

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Source: Nikkan Kogyo Shimbun