Suzuki Motor Corporation Could Exit Chinese Market, Blames Low Sales of Small Cars
New vehicle sales in 2017 plunged 28 percent from the year earlier to around 79,000.
Suzuki Logo. (Photo: Reuters)
Suzuki Motor Corporation, the Japanese automajor could exit the world’s largest auto market – China, given the low sales volume of small passenger cars, a segment Suzuki specializes in. Suzuki is mulling to end its partnership with Chinese car-maker Changan Automobile Co. as revealed by industry sources in Japan and China.
Although China is the world’s largest auto market, Suzuki’s decision to end the partnership is due to slumping sales, an outcome of consumer’s buying preference. While Suzuki specializing in making compact cars, Chinese consumers favor large vehicles as evident through sales data.
Even if buyers go for a compact vehicle, they prefer home grown brand, which is relatively cheap. The Japanese automaker is carefully contemplating the option of exiting the country as once out, it would be difficult to re-enter, the sources said.
Called the Chongqing Changan Suzuki Automobile Co., the joint venture between Suzuki Motor Corporation and Changan Automobile Co. has been struggling to find good sales numbers. New vehicle sales in 2017 plunged 28 percent from the year earlier to around 79,000.
One option on cards is that the joint company is disbanded and Changan Automobile continues to manufacture Suzuki brand vehicles under license.
Source - Mainichi
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.
Recommended For You
- Deepika Padukone's 'Daddie' Remark for Ranveer Singh Has Fans Guessing if She's Pregnant
- Streaming Now: Sacred Games Gets Bigger in Season 2, It's Game Over for Taapsee Fans
- Gay Penguin Parents Who Tried to Hatch Stone Get Presented With Real Egg
- Hilarious 'Alag Alag' Memes from Ayushmann's 'Dream Girl' Trailer Bring Twitter Together
- Microsoft Surface Pro 6 and Surface Book 2 Firmware Update Causing CPU Issues