Suzuki Motor Corporation has formulated and announced a five-year plan starting from FY2025, having achieved its medium-term management plan that has been in progress since FY2021 ahead of schedule. The medium-term management plan mentioned above had targeted sales of 4.8 trillion yen and an operating profit margin of 5.5%, but the company has already achieved sales of 5.4 trillion yen and an operating profit margin of 8.7%.
Under the new medium-term management plan “By Your Side,” which expresses the company’s desire to be closer to consumers, the company aims to achieve sales revenue of 8 trillion yen and an operating margin of 10.0% (800 billion yen). In addition, the company expects to spend 4 trillion yen for capital investment and R&D.
In product development, the company has been working on the keywords of “small, little, light, short, and beautiful,” and will continue to follow this approach. In addition, the company will introduce BEVs, biomethane gas-compatible vehicles, ethanol-mixed fuel-compatible vehicles, and other vehicles in line with the energy situation in each country.
In India, the most important market for Suzuki, the company will focus on reaching out to the one billion people who still cannot afford Suzuki’s products, aiming for a 50% share of the market and aiming to be the number one in BEV production, sales, and exports.
As demonstrated by the Fronx and Jimny Nomade, the company will also expand its function as an export base and build an annual production capacity of 4 million units, but President Toshihiro Suzuki says, “We will not make it 4 million units at all costs, but will proceed according to the situation. Four BEV models, including the e-Vitara, will be introduced locally by FY2030.
In Japan, where overall demand is declining rightward, he will work to increase profits by increasing sales of registered vehicles. Following the Fronx and Jimny Nomade, the company is also willing to import and sell vehicles from overseas, planning to introduce the e-Vitara and a light BEV van (procured on an OEM basis from Daihatsu) in FY2025 and six BEV models by FY2030.
In Europe, where the company wants to maintain a certain scale of business, it will also aggressively introduce Indian models to maintain its lineup. In addition, the company plans to develop the Middle East and Africa with Indian models.
In the ASEAN region, the leading market is Pakistan, which holds the top market share of 45%. Since the Alto has been well accepted there, the company plans to globalize its light vehicles.
The motorcycle business targets global sales of 2.54 million units and operating profit of 50 billion yen, and the marine business 35 billion yen (both targets for FY2030).
At the press conference, President Suzuki expressed a sense of crisis over the company’s concentration in one country, India, which is one of its strengths, saying, “It is important to use up Indian models on a global basis,” citing the Fronx and Jimny Nomade as examples of models introduced in other countries. He also mentioned the policy of increasing the number of products that can be sold globally, rather than regionally exclusive models.
Regarding the relationship with Toyota, he said, “We will work together while competing with each other. We will work together while competing, and we will do so with mutual respect and esteem.
After assuming the post of Director in June 2021, President Suzuki took the baton from Osamu Suzuki, Advisor to the Board of Directors, and has been managing the company under the name Team Suzuki. When asked about the results of his efforts, he replied, “We now have a system that allows communication across the board.
All employees will experience their first year without an advisor”, and he said of his advisor, “I received strict guidance from him. He was both a good teacher and a bad teacher”. He renewed his determination, saying, “I will carry on what I need to carry on and discard what I need to discard”.
