Japan’s Suzuki Motor Corporation has acknowledged the need to rethink its strategy in India as its market share declines and competition in the electric vehicle (EV) sector intensifies. The company noted this shift in its latest investor presentation, highlighting the evolving business landscape.
As part of its mid-term management plan (Japanese FY2021–FY2025 / Indian FY2022–FY2026), Suzuki had set ambitious revenue and market share targets. While it successfully surpassed revenue and profit goals ahead of schedule—driven by a stronger sales mix, improved quality, and favorable exchange rates—sales volume targets remained unmet.
The company had aimed for a 50% market share in India by FY25, but despite launching new SUV models, its share has stagnated at around 41.6%. The management acknowledged the need to adapt, stating, “The business environment has changed due to declining market share in India and intensified competition in electric vehicles. Need to rethink strategy.”
Suzuki had initially projected revenue of 4.8 trillion yen by FY25 (Indian FY26) but exceeded expectations, posting 5.4 trillion yen in revenue last financial year. The operating margin reached 8.7%, surpassing the mid-term target of 5.5%, while return on equity stood at 11.7%, outperforming the 8% target.
The company has undergone a leadership transition in recent years. Former Chairman Osamu Suzuki gradually stepped back from management, passing the reins to a collective leadership team led by President Toshihiro Suzuki at the 155th Annual General Meeting on June 25, 2021. While maintaining the company’s traditional management philosophy, President Suzuki has refined and modernized its approach to align with contemporary challenges.
Suzuki’s operating system (OS) is built on fundamental principles that guide its operations, including its “Mission Statement” and three core philosophies. The first is Sho-Sho-Kei-Tan-Bi, which emphasizes the importance of being Small, Fewer, Light, Short, and Neat. This approach encourages efficiency, simplicity, and compactness in design and production processes.
The second philosophy, Genba, Genbutsu, Genjitsu (3G), translates to focusing on On-site, Actual things, and Reality. It underscores the importance of understanding the actual situation on the ground and directly engaging with real-world conditions. The final philosophy, YARAMAIKA, embodies the Entrepreneurial Spirit, encouraging innovative thinking and a proactive approach to business challenges, driving growth and adaptability within the organization.
The company is also enhancing corporate governance and competitiveness based on the 83 principles of the Corporate Governance Code, which was significantly revised alongside the leadership transition. As Suzuki navigates this period of transformation, its strategic reassessment in India will be critical to maintaining its stronghold in one of its most important global markets.
