Japanese carmaker Suzuki Motor Corporation could exit the Chinese market and end its joint venture (JV) with Chongqing Changan Automobile Co, according to media reports.
Suzuki Motor Corporation, which exited the United States in 2012, has reportedly been battling low sales in China. A report in the Mint, which cited the Nikkei Business, said the Japanese car maker will sell its stake in the Chinese JV to the local manufacturer.
But, according to The Mainichi, Suzuki could terminate the JV with Chongqing Changan and mandate the Chinese company to manufacture Suzuki vehicles under a license.
The JV registered a sharp fall of 28 percent in the sale of new cars in fiscal 2017, from a year ago, to around 79,000, the Mainichi report said.
After exiting the Chinese market, Suzuki Motor Corporation will be able to focus more on the Indian market, according to the Mint.
Media reports about Suzuki mulling a China exit hit the stock of the Japanese carmaker, which lost 4.8 percent in Tokyo trade on Thursday, Bloomberg reported.
Maruti logs lower sales
On 1 August, Maruti Suzuki India said it had logged a marginal decline in sales at 1,64,369 units in July 2018. The company sold 1,65,346 units in July 2017.
Domestic sales were up marginally at 1,54,150 units last month as against 1,54,001 units in the year-ago month. Sales of minicars comprising the Alto and the WagonR were at 37,710 units as compared to 42,310 units in July last year, down 10.9 percent.
Exports in July were also down 9.9 percent at 10,219 units as against 11,345 units in the corresponding month of the previous year, the company said.
With inputs from PTI
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Updated Date: Aug 24, 2018 19:07:19 IST