[Company analysis] Suzuki Motor Corporation (スズキ)

「Suzuki Motor Corporation (スズキ)」is a manufacturer specializing in automobiles and motorcycles. In the shipment volume, this company is 10th largest automobile manufacturer in the world and the 8th largest motorcycle manufacturer. They also produce not only finished automobiles but also various small internal combustion engines used in ATVs, small ships, wheelchairs, etc. The number of consolidated employees is approximately 61,179.

 

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Suzuki Motor Corp.
Company name (Japanese)	スズキ
Date of establishment	March 1920
Headquarters location	〒432-8065 静岡県浜松市南区高塚町300
Capital	138,161
Consolidated sales	3,871,496
Consolidated operating profit	324,365
Consolidated total assets	3,401,970
Consolidated capital	1,715,914
Capital adequacy ratio	50.4%
Consolidated number of employees	65,179

 

 

 

2. Summary and Features

 
In 1909,「Suzuki Loom Works」was established by Suzuki Michio who is the inventor of the Meiji erain 1909, and this is the begining of「Suzuki」. At the time of its establishment, they were manufacturing timber looms and metal loom production. However, due to the saturation of Japanese power loom market, the competition became intensive. That is why「Suzuki」expanded their business area to automobile industry. 

In 1937, they succeed in developing small automobile, and in 1952 they started full-scale development of motorcycles. They initiated mass production of automobile from 1955, and soon established a solid position in the small automobile market. Even now, this company is focus on the small automobile market. If we consider only the domestic sales volume for the small automobile from 1973 to 2006, 「Suzuki」is the No. 1 in Japan. In addition to their own products, they conducts OEM business for「Mazda Motor」,「Nissan Motor」and「Mitsubishi Motors」.

In the past, they had a tie-up with「General Motors」, but due to the aftershock caused by Subprime mortgage crisis, and the deterioration of the performance of「GM」, this relationship was ended as of 2009. Then「Suzuki」had entered into a business and capital tie-up with「Volkswagen」and became a member of Volkswagen Group. At the time,「Suzuki」tried to introduce the advanced environmental-related technology from「Volkswagen」. Instead, 「Volkswagen」hopes to secure technology for small automobiles and solid position in the Indian market and Japanese market.

The problem is,「Volkswagen」, who had became the partner company to「Suzuki」tried to deeply intermeddle in the management of「Suzuki」. In fact,「Suzuki」is a hereditary company whose founding family is deeply involved in the management from its beginning. So the management opposed the policy from「Volswagen」, and eventually the partnership was badly ended. Instead, they decided to tie-up with「Toyota Motor」from 2017 for next-generation eco-cars and autonomous driving technology.

「Suzuki」has advanced technology in small automobile field, and in particular, advantages on the Indian market. At present, This company has the highest market share in the Indian automobile market(54%). Considering the fact that Indian market is expected to be increased in future, this might be the bigiest advantage. However, except in Japan and India, their brand power is relatively weak. In addition, they are weak at next-generation technologies such as EV and autonomous driving. That is the reason why「Suzuki」formed tie-ups with「General Motors」, 「Volkswagen」,「Toyota Motor」one after another.

 

 

 

3. Major Business

 

■ Automobile business
Suzuki's automobile business is famous for their excellent fuel efficiency. Especially, their market share in India is overwhelming. 

■ Motorcycle business
They handle a wide range of motorcycles, from 50cc scooters to large motorcycles.

■ Offshore business
Since they initiated outboard motor business in 1965, they have been handling outboard motors and engines for small boats for various purposes, from marine leisure to commercial use.

■ Electric wheelchair business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		3,169,542	3,757,219	3,871,496
Consolidated operating profit		266,685	374,182	324,365
Consolidated total assets		3,115,985	3,340,828	3,401,970
Consolidated net assets		1,387,041	1,595,227	1,715,914
Breakdown of sales	Japan	1,293,486	1,381,093	1,472,710
	Europe	344,591	428,974	438,838
	Asia	1,389,743	1,782,112	1,777,867
	Others	141,721	165,038	182,080