Suzuki Motor has adjusted its electric vehicle (EV) strategy, particularly in India, which remains its most critical market.
Japan-based Suzuki Motor has revised its EV launch plans, scaling back from six models to four, while also reducing its overall sales target in the country.
Originally aiming to sell three million cars in India by March 2031, Suzuki has lowered that estimate to 2.5 million, reflecting changing market conditions and increased competition from local automakers such as Tata Motors and Mahindra & Mahindra. This shift aligns with a slowdown in EV sales worldwide and the impending entry of Tesla into the Indian market, which has finalized locations for its first showroom, Reuters news report said.
Maruti Suzuki, the company’s local subsidiary, has been facing declining market share in India, dropping from a peak of 51 percent in 2020 to 41 percent currently. The automaker had initially targeted regaining a 50 percent market share by 2026, but it has now extended that goal to 2031.
One of the key challenges has been the changing preferences of Indian buyers, who are increasingly opting for feature-rich SUVs over the small cars that have traditionally been Suzuki’s strength.
Suzuki now plans to strengthen its SUV lineup and expand manufacturing capacity in India to four million units annually. However, instead of achieving this by March 2031 as initially planned, the company has adopted a more flexible timeline.
Suzuki, in its financial presentation, said India is expected to receive 60 percent of a planned $13 billion investment by 2031 and will serve as Suzuki’s key production hub for exports to markets in the Middle East and Africa, including electric vehicles.
President Toshihiro Suzuki reaffirmed India’s importance to the company’s global strategy, emphasizing that it remains the automaker’s top priority for investment and growth.
The slowdown in EV adoption, particularly in Europe, has prompted Suzuki to adopt a more diversified approach to electrification.
Toshihiro Suzuki noted that new technologies can only thrive if they gain customer acceptance, highlighting that the demand for battery electric vehicles (BEVs) has not been as strong as expected. As a result, the company is not focusing solely on EVs but is also investing in hybrid and bio-gas technologies to cater to different markets and regulatory environments.
Financially, Suzuki aims to maintain profitability while transitioning toward new technologies. The company has set a goal of achieving an operating profit margin of at least 10 percent by 2030, up from the 9.2 percent recorded in the past financial year.
Additionally, Suzuki projects a revenue increase of 49 percent by the 2030 financial year, reaching a target of 8 trillion yen. Analysts see the company’s revised EV strategy as a response to intensifying competition and a slower-than-expected global shift to electric mobility.
Baburajan Kizhakedath
