Driving Growth: Suzuki Motor’s Focus on India for Global Sales Surge

Suzuki Motor Corporation is anticipating yet another year of record sales and operating profits, extending its streak for the fourth consecutive year. The driving force behind this anticipated success lies primarily in the Indian market, where Suzuki expects to outperform the overall market growth. Despite a projected 2% growth in the Indian market for the current financial year, Maruti Suzuki is poised to surpass this rate.

In the previous financial year, India accounted for a significant portion of Suzuki’s global operations, contributing to over 61% of total output and 57% of total global sales. The company foresees further expansion in its market share by 100-150 basis points. Factors contributing to Suzuki’s robust performance include stabilized raw material prices due to a weak yen, relief from semiconductor shortages, increased sales volume, and improved product mix.

A key aspect of Suzuki’s strategy in India involves strengthening its SUV lineup and expanding its market share. The company has already witnessed substantial growth in its SUV segment, with Maruti Suzuki’s SUV share increasing from 8.9% to 20.8% in the previous financial year. Despite a slight decline in overall passenger vehicle market share, Suzuki is confident in its recovery trajectory.

Suzuki has also achieved a significant milestone in India, with the cumulative production of automobiles reaching 30 million units by the end of March 2024. To further bolster its production capacity, a new production line with an annual capacity of 100,000 units has commenced operations at the Manesar plant. Looking ahead, Suzuki aims to achieve a production capacity of approximately 4 million units in India by FY2030.

In terms of sales projections, Suzuki anticipates selling 3.25 million automobiles and 1.89 million motorcycles in the current financial year. Despite the challenges posed by the previous year’s CNG component supply shortage, Suzuki remains optimistic about surpassing market growth.

While Suzuki acknowledges the global trend of declining output, particularly in regions outside Asia, the company remains bullish on the Indian market’s potential to meet increased global demand. Suzuki is actively devising strategies across various domains, including technology, and plans to unveil its new midterm management plan by the end of FY2024.

Maruti Suzuki, in alignment with Suzuki’s growth strategy, is gearing up for close to double-digit growth in FY-25. The company has instructed its component suppliers to prepare for a production plan of 2.4 million units in the current financial year, with a significant allocation for the overseas market.

Innovations in vehicle technology, particularly in the realm of hybrid electric vehicles (HEVs) and compressed natural gas (CNG) vehicles, remain a focal point for Suzuki’s growth strategy. Despite a decrease in HEV sales, Suzuki has observed an increase in CNG vehicle sales, aligning with its multi-pathway strategy for achieving carbon neutrality.

Overall, Suzuki’s emphasis on the Indian market and its concerted efforts to align with evolving consumer preferences and technological advancements position the company for sustained growth and success in the global automotive landscape.