Suzuki has been troubled to sell its compact models in China in recent years with a growing socio-economic class more and more choosing larger cars. The firm blank its forty six % stake in a very team with Jiangxi Changhe Automobile in June.
SuzukiNSE -0.52 ICE house aforementioned it might transfer its fifty p.c stake in an exceedingly Chinese automaking venture (JV) to Chongquing metropolis Automobile Co , as sluggish sales prompt the japanese firm to retreat from the world’s largest automotive vehicle market.
Suzuki has been troubled to sell its compact models in China in recent years with a growing class progressively choosing larger cars. The firm dud its forty six p.c stake in an exceedingly team with Jiangxi Changhe Automobile in Gregorian calendar month.
in an exceedingly statement on Tues, Suzuki aforementioned it might transfer its equity in metropolis Suzuki, fashioned in 1993, to metropolis Automobile, creating the team a wholly-owned subsidiary of the Chinese company.
“Due partially to shifting of (the) Chinese market to larger vehicles, we’ve determined to transfer all equity to metropolis Automobile,” Suzuki Chairman Osamu Suzuki aforementioned within the statement.
Chinese sales of vehicles created underneath licensing by metropolis Suzuki, as well as the Vitara compact SUV, can continue for the present, the japanese auto manufacturer aforementioned.
Suzuki sold-out a hundred and five,000 vehicles in China within the year all over March, down twenty nine p.c from a year agone, and considerably reduced from 252,000 in 2013.
whereas sales have diminished in China, Suzuki continues to dominate the vehicle market in Bharat, its biggest market.