Chinese motorists are increasingly moving towards luxury models and larger vehicles, riding on the back of strong economic growth of the Country. Stricter regulations could be another factor. China will start requiring carmakers to produce a certain percentage of New Energy Vehicles (PHEVs, BEVs and FCEVs) from next year. Suzuki’s lineup lacks such models.
Earlier this month, Suzuki announced the dissolution of an alliance with Changhe Automobiles and is currently in talks to dissolve their joint venture with Chinese partner Changan Automobile. The divestments mean Suzuki would be pulling out the world’s largest auto market after more than two decades of production there.
India is BIG for Suzuki and Suzuki has big plans for India. Maruti Suzuki dominates the Indian car market with a share of 50 per cent. More than half of Suzuki’s global revenues come from India. In 2020, the first-ever Maruti Suzuki EV based on the Maruti Wagon R will be launched in 2020. Also, Suzuki has formed an agreement with Toyota to share vehicles and technologies in India. The All new Suzuki Jimny could also be a huge sellout in India with Government and Armed Forced replacing their Gypsys.