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Suzuki Motor Corporation has decided to exit the Chinese market after a sharp fall of 28 percent in registered sales. The company has also ended their joint venture with Chongqing Changan Automobile Co. This marks the exit of Suzuki from two countries with the highest recording sales; USA and China.
Suzuki exited the US market back in 2012 after recording low sales, similar to China. This departure from the Chinese and US market will now allow the company to focus on Maruti Suzuki in India.
According to Livemint, Suzuki cars sales in China has been slow, unlike in India. The joint venture of Suzuki Motors with Changan Automobile ended late last year, however, the Chinese company still sells Suzuki vehicles under license.
Suzuki in India, control 51 percent of the total car sales in the country. According to reports, every second car sold in India is a Maruti Suzuki model. The company has also been able to double their net profits in the last three years. Maruti Suzuki has recorded profits of over Rs 2,000 crore each quarter during this time.
However, the company has been seeing a marginal decline in sales, during the month of July 2018. The company sold 1,64,369 units during the previous month, compared to 1,65,346 units during July 2017. Although, domestic sales have increased marginally from 1,54,001 to 1,54,150 during the same time period.
The decline was mainly due to the slow sales of two of their products; Alto and the WagonR. The two cars recorded a sales drop of 10.9 percent from 42,310 to 37,710 during July 2017 and 2018, respectively. Export sales also dropped by 9.9 percent to 11,345 units compared to the same month last year.
Thoughts On Suzuki Motors Exiting China
With Suzuki Motor Co exiting the Chinese market, they will effectively shift their focus to India. With every second car being sold in the country, Maruti Suzuki hopes to further assert their dominance in the Indian market.
Suzuki's tie-up with Toyota in India, will also further help the company bring in new vehicles, while also improving their safety and information technology.