Suzuki Motors originated in 1909 when the founder, Michio Suzuki, established Suzuki Textile Machinery Co., Ltd. in Hamamatsu, Japan. At first, Suzuki focused on the research and development of electric bicycles and motorcycles, and later expanded into the field of small car manufacturing. Osamu Suzuki, as the head of the Suzuki Corporation, has witnessed the glory of Suzuki and learned a lot of business wisdom. Under the leadership of the Suzuki Group, he built an automobile manufacturing plant on his own and laid an automobile plant overseas, laying a solid foundation for Suzuki. In 1978, Osamu Suzuki became Suzuki's fourth president and was ready to enter the Chinese market.
However, in the years, Western countries imposed a technological blockade on China, which had a great impact on the development of China's automobile industry. Suzuki took advantage of the situation to lend a helping hand to China, providing technical support and guidance to enter the Chinese market. Suzuki cooperated with Chinese motorcycle companies to launch the "Haojue Suzuki" motorcycle, which began to occupy a place in the Chinese market. Subsequently, Suzuki cooperated with Changan to launch Alto Motors, which was a great success in the market. Until the years, Suzuki's annual sales reached more than one million units, becoming a popular brand in China at that time. In 2004, Suzuki set up a company in China and continues to sell its own cars.
However, Suzuki's brilliance did not last long, and it suddenly suffered a serious blow and gradually faded into obscurity. What's going on here?
Suzuki Motors' products are quite excellent in the automotive industry, and they are very competitive in terms of fuel efficiency, performance, and **, and are loved by consumers. However, with the development of China's economy and changes in consumption habits, Suzuki did not adjust its strategy in time. While other automakers rushed into the Chinese market to gain market share, Suzuki did not notice the changes in the market.
Medium- and large-sized cars are starting to become a very popular choice among Chinese consumers. They have more space, higher performance and better face, and are more suitable in meeting the needs of Chinese consumers. Against this backdrop, almost all automakers are opting to launch mid- to large-sized vehicles to meet demand. However, Suzuki, as a leader in the automotive industry, was unaware of the crisis.
Maybe Suzuki doesn't care about this phenomenon, after all, there are always some consumers who can't afford to buy medium and large cars, and will choose to buy small cars with low **. However, they did not expect the Chinese market to become so competitive. As the economy grows, the small car market is becoming more and more competitive, and many cars are more competitive than Suzuki in terms of performance and **, and even more and more stylish cars to choose from. To become a leader in the automotive industry, Suzuki had to do more.
However, Osamu Suzuki has always had a sense of self-confidence that consumers should adapt to Suzuki's developments, rather than changing models based on changes in the market. This stubbornness and conservative thinking became the main reason for Suzuki's downfall. Since 2007, Suzuki's sales in China have been declining, while other automakers that have responded to consumer demand have been growing rapidly. The F3 and F6 series models launched by the local Chinese brand BYD occupied a gap in the mid-size car market and achieved great success. Japanese brands such as Toyota and Nissan have also launched SUV models and have made huge gains, successfully surpassing Suzuki Motors.
By 2012, Suzuki's sales in China had fallen to a dismal level, with only about 50,000 units, with a market share of less than 1%. High-level decision-makers began to realize the seriousness of the problem and decided to upgrade and transform the production chain. However, it was too late, the product positioning was not accurate, the design was not prominent, and it did not cause much repercussions, nor did it reverse the trend of declining sales. Suzuki was not reconciled, and continued to introduce SUV models in the next few years, but the market was saturated with medium and large cars, and Suzuki lost all favorable conditions.
Osamu Suzuki was very angry about the failure, he did not want to believe in his failure, and decided to let Suzuki withdraw from the Chinese market, and said that he was not willing to make changes for the Chinese market even if he died. After that, Suzuki turned to the developing Indian market and gained a strong foothold in India on its own. India has become a major sales destination for Suzuki, but as India's economy grows, so does the demand for medium- and large-sized vehicles. It is foreseeable that Suzuki may face a new transformation hurdle in the future.
Despite Suzuki's failure in the Chinese market, Suzuki did not give up and still worked hard to find new opportunities and breakthroughs. In the Chinese market, Suzuki mainly focuses on the field of small cars and micro cars, and has launched more environmentally friendly and energy-saving products. For example, Suzuki launched the Blue Sky series in China, which has achieved some success in the market due to its fuel economy and environmental friendliness. In addition, Suzuki has also made certain explorations and attempts in the field of electric vehicles, launched electric models in some cities in China, and established electric vehicle charging stations. These efforts have found some new opportunities and room for growth for Suzuki in the Chinese market.
In addition, Suzuki is also strengthening its relationships with local partners in China to secure additional resources and support. For example, Suzuki and its Chinese joint venture partner, Changan Automobile, have been strengthening their cooperation to jointly develop and launch more models that meet the needs of the Chinese market. In addition, Suzuki has partnered with CATL, a Chinese battery manufacturer, to launch an electric vehicle equipped with CATL batteries, further enhancing Suzuki's competitiveness in the Chinese market.
In general, Suzuki's decline in the Chinese market is mainly due to stubborn and conservative business strategies, which have not adjusted their products and market positioning in time to adapt to changes in consumer demand. Despite the failures and setbacks, Suzuki did not give up and tried to reinvigorate its business in the Chinese market by finding new opportunities and transformation efforts. Although Suzuki's current sales in the Chinese market are not ideal, we can expect that with Suzuki's unremitting efforts, Suzuki will be able to return to the top in the Chinese market.