Seeking wider canvas, Suzuki takes India model global2 min read . Updated: 01 Jul 2015, 12:37 AM IST
The auto maker sees India as world's third largest passenger vehicle market by 2020 with sales of 5 million units
Suzuki Motor Corp. (SMC) will aim to replicate its India’s growth model in Indonesia, Thailand and Hungary, developing these nations as global production hubs over the next 10 years, as the Japanese car maker seeks to cut its overwhelming dependence on India and its home market.
The company also named Toshihiro Suzuki as the new president, replacing his father Osamu Suzuki, who has been at the helm of Japan’s fourth largest auto maker since 1978. Executive vice-president Toshihiro Suzuki took over from his father as president and chief operating officer effective from Tuesday. Osamu Suzuki will remain as chief executive officer (CEO) and chairman.
In a presentation in Tokyo on Tuesday, SMC said its revenue is likely to rise to 3.7 trillion yen ( ₹ 1.92 trillion) in the year ending 31 March 2020 from 3.01 trillion yen at the end of March 2015. Mint has reviewed a copy of the presentation.
SMC plans to introduce 20 new models globally by 2020, of which 11 models will be in the small car segment and nine in the sedan and utility vehicle segment as it seeks to shed the small-car-maker tag. Most of the new cars are expected to be rolled out in India.
“The SMC medium-term plan announced today (Tuesday) puts high focus on India, which is very positive," said K. Ayukawa, managing director and CEO of Maruti Suzuki.
In India, SMC will increasingly introduce pricier cars. It will sell at least two models (the Ciaz sedan and a yet-to-be-introduced S-cross crossover) under a separate marketing and sales network called Nexa. Mint reported this first on 11 May.
The company expects India to become the world’s third largest passenger vehicle market by 2020 with annual sales of five million units. This can further grow to eight million units annually by 2025. The global mini car market will also expand from six million units in 2015 to eight million units by 2025, the company said.
SMC is making a “full-throttle effort" to make its presence felt at the global level and the ideal way to do that is by capturing market share in the emerging markets, which complement its small car portfolio, according to Anil Sharma, principal analyst at consulting firm IHS Automotive.
“Their strength has been in the small car segment. Two years ago, they pulled out of the US as their products were not made for that market," Sharma said. “Apart from Europe and South-East Asia, the next big market is Africa, where demand complements Suzuki’s product portfolio."