Japanese car manufacturers are streamlining their businesses to keep their heads in the profit-making top of the proverbial water. But it seems that Suzuki who is the 9th largest automotive manufacturer globally doesn’t have such problems. They have announced plans to pump up vehicle production to about 1.45 million vehicles in India, which is Asia’s third largest automobile market, by 2012.
This would mean that they would overtake production numbers at the company’s Japanese factories, which now stand at 1.4 million units annually. Growing production will be accomplished by investments of 2-4 billion yen (21 -43 million dollars) from its Indian arm, Maruti Suzuki, and will be used to upgrade two of its factories. This will increase its production capacity from 1 million units to 1.2 million for the time being.
Maruti Suzuki will also spend 33 billion yen (360 million dollars) to build a third plant which will see an output capacity of 250,000 units. This will be up and running by the mid part of 2012.
The move has been engineered amid Suzuki enjoying growing sales figures within the Indian subcontinent, largely due to inexpensive loans, a variety of new models and a recovery in demand. Models now available within the country include the Swift, the Swift DZire sedan, the A-Star and the SX4. Now you understand why Volkswagen wanted a piece of Suzuki?
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P1 must have second thoughts about going into the India
market. With so many big players , P1 will defintely struggle trying to
penetrate this market.
Better go back to your drawing board and do your due deligence
cos it will be costly !!!!
Suzuki and Subaru always seem to have much better luck keeping thier heads above water. For thier size they always seem to be really profitable.
Not sure where their secret lies.
Both focus and put strong emphasis on great engineering…
Both also successful in rallying… Suzuki in Junior WRC and Subaru (at some point)… WRC… but not officially anymore but still maintain supplying the current gen Impreza for private teams…
In any case, they seem similar to how Porsche operates… an engineering driven company with motorsport pedigree… maintain profitability and not wasteful with your cash…
wait the minute, Suzuki is partly owned (19.9%) by VW now and Porsche is also part of VW… what the?…. ;-) *you get my drift…*
normally what benefit will invetstor get by 19.9% ? i dont know commercial and law
it’s not the the quantity of shares that matter to VW here….
it’s the access to the manufacturing facilities, technology, platform sharing, component sharing etc.. etc… you won’t get much return from 19.9% shareholding BUT… and a big BUT… they will get intangible returns from sharing or leveraging on current Suzuki’s facilities for future VW Group model expansion…
I can see the reason why they are no longer interested in Proton at the moment since they have taken the % stake in Suzuki… Suzuki is one of the biggest “small car” manufacturer in Asia with significant market share in India & Japan and they have the potential to grow this in other markets with the majority of the world now going crazy on “downsizing”….
ermm….in p1 & lotus, i dont see any new progress or benefit that proton get…..poor us… hopefully not 1 euro again…
Suzuki as compact carmaker enjoy hefty tax discount on its range of cars in india. This is their secret of success.
True Azrai. They have been monopolized the Indian market since the early 80s, when no other car makers are allowed to sell their cars here. Thats why you can’t see many 80s & 90s cars here. If you saw one, then it is personal imports/grey market. Up until mid 90s, you have only choice of Maruti-Suzuki, Hindustan Ambassador or Premier Cars. Tata didn’t have passanger car until 97.
Quite a unique way to protect their local market.
……bro..are you in india? which city?
Thats all the story of the 90s when the auto market in India was restricted to a few. Now with every major player in the market, its a free for all in the Indian market. Hyundai has been equally successful along with Tata selling small cars in the Indian market.
LOL now Suzuki builds a big factory in India to build more than 1.5 million cars a year.
Those factories can be built in Msia. BUT thanks to Potong, no chance.
Now even Potong’s own factories in Tg Malim barely 30% utilized.
Thanks alot P1 and Mahathir! Msia Boleh!
Bodoh Sombong .
Synergies with VW was a fantastic business
opportunity gone bad. – All because of ego and self pride.
While major manufacturers are consolidating and rebuilding
P1 is still expecting others to come knocking at their door and
begging for a piece of crumb…WTH.