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Suzuki likely to exit Chinese market

June 26, 2018, 05:51 PM IST by Nikhil Puthran
Suzuki likely to exit Chinese market

- Low demand for small cars in China
- Lacks electrified vehicle options
- To focus on Indian and Japanese market

Suzuki, a strong player in the small car segment has been witnessing a drop in sales in the Chinese market, primarily due to stronger demand for bigger cars. The Japanese car manufacturer had also recently dissolved its alliance with a local manufacturer - Jiangxi Changhe Automobile, thereby indicating on its plans to exit from the world’s largest car market.

Lack of government’s car policy and more focus on electric vehicles in China has resulted in a drop in sales for the Japanese car manufacturer. Other Japanese car manufacturers like Toyota and Honda have adapted to electrified and autonomous cars for the Chinese market, while Suzuki has no electric offering in the Chinese market yet. India being a strong market for small cars, the company will currently focus on strengthening its foothold in the country as well as the Japanese market. Suzuki will eventually move towards electric vehicles for European and Chinese market, but that will only be after its debut in India by 2020.

In terms of numbers, the company has sold 32,20,000 units globally of which half of the total number is from India. The company has also witnessed a 30 per cent drop in China as compared to the previous year and it stands at 1,00,000 units.  Production for Suzuki in China has dropped by 70 per cent with 86,000 units in FY 2017 as compared to peak levels in 2010.

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