India continues to raise its stake in the global share of Suzuki Motor Corporation. For the first time ever, the production in the first nine months of FY23 (April 2022 to December 2022) accounted for 60 percent of the global car production for Suzuki Motor.
- India overtook Japan as the third-largest vehicle market in 2022
- India is significant as a global exporter, says Toshihiro Suzuki
Maruti Suzuki accounts for 41 percent of Suzuki’s global revenue
A growing domestic market and the rising share of exports from here have meant that India continues to weigh heavily in the fortunes of Suzuki Motor Corporation's future. It is not only production, but the contribution of Maruti Suzuki in terms of sales, revenues and profitability also continues to rise year after year.
Consider this: in the first nine months of this financial year, the share of Maruti Suzuki's sales in Suzuki Motor Corporation was 55 percent versus 50 percent for the same period in the last financial year. The revenues now account for 41 percent of the Japanese parents’ global revenue and 45 percent of its profitability – these numbers were 33 percent and 15 percent, respectively.
Despite the production disruption due to parts shortage, Suzuki Motor has revised its earnings forecast upwards on a strong 21 percent growth expected out of India and a favourable currency mix.
‘India has potential to be largest car market in the world’
Toshihiro Suzuki, president of Suzuki Motor Corporation, during his recent visit to Auto Expo 2023 had said that India is significant for the Suzuki Motor Group, not only in terms of domestic sales but also as a global exporter. “The export has almost doubled in the last five years, with a record high of over 2,30,000 units last fiscal year. This year too, we are likely to set a new record for exports. We are making various efforts in order to expand the exports from India,” he said.
Toshihiro Suzuki added that India has the potential to be the largest car market in the world. In 2022, India overtook Japan as the third-largest vehicle market in the world. In the nine months of this financial year, Maruti Suzuki sold a total of 14,51,237 units. Sales in the domestic market stood at 12,56,623 units and exports were at 1,94,614 units.
The company had set itself an internal target of 2 million units for FY23, but due to supply chain disruption, it may miss the target by a small margin. With the launches of Jimny and Fronx in India, Suzuki has set itself a target of grabbing SUV market leadership in FY24.
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