Suzuki withdraws from the Chinese market
- Suzuki has decided to withdraw from the Chinese market because its small cars no longer meet Chinese demand. In fact, the Chinese market is increasingly fond of segment C and D SUVs, as well as C and D segment sedans, but demand for A and B segment SUVs and sedans (which Suzuki offers) has considerably shrunk, and the brands that have the most influence in this category are the Chinese brands that offer these models at very low prices.
- Suzuki sold less than 110,000 vehicles in China last year (-26% over 2016) on a worldwide sales volume of 3.16 million units, therefore less than 3.5% of its global sales.
- Suzuki will continue to focus on its largest market, India, which accounts for half of its worldwide sales, or 1.6 million units in 2017 (marketed under the Maruti brand) and whose potential seems to be greater.
- As early as the 90s, Suzuki chose Changan, a Chinese partner, which also works with Ford and Mazda. The Japanese will sell to its local partner its 50% stake in the Chongqing Changan Suzuki Automobile joint venture. The Suzuki brand will however continue for some time in China, via vehicles produced under license by Changan.
- As long as Suzuki does not offer models of the C and D segments, the Chinese market will be very unfavorable, and Suzuki’s strategy does not include these segments.
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