Brief on Suzuki's Growth Strategy for FY2030

21 March, 2023

Brief on Suzuki's Growth Strategy for FY2030 - Presentation Download

Suzuki Motor Corporation announced its Growth Strategy for FY2030. Magyar Suzuki Corporation’s parent company developed its strategy along the following principles in order to fulfill its motto to deliver “value-packed products” by focusing on the customer:

• Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty) manufacturing philosophy.
• Lean management approach, which seeks flexibility, efficiency and continuous optimization.
• Three GEN (genba, genbutsu, genjitsu), the “Three Actuals” principle according to which arising problems can only be solved at the actual place based on actual facts and the understanding of the processes.

 

Outline of the Growth Strategy

Suzuki will contribute to the realization of a carbon neutral society and the economic growth of emerging countries such as India, ASEAN, and Africa. The center of its business activities however remains Japan, India and the European region. The group focuses on creating solutions that are unique to Suzuki, which are to develop products and services focused on the customer and grow along with the operating countries and regions.

 

Major Initiatives for FY2030

 

Carbon Neutrality

Suzuki Group aims to have all of its plants and product portfolio carbon neutral globally. They aim to achieve carbon neutrality in Japan and Europe by 2050 and in India by 2070. As part of this mindset, the company will expand customer choices and deliver products and services that meet the needs of each region:

• Automobiles

In Japan, after the introduction of commercial mini-vehicle battery EVs in FY2023, Suzuki plans to introduce compact SUVs and passenger mini vehicles, with 6 models to be launched by FY2030. In addition, it will develop new hybrids for mini and compact vehicles, by combining them with battery EVs.

In Europe, Suzuki will introduce battery EVs in FY2024 (ending on 31 March 2025) expand to SUVs and B-segments, with 5 models to be launched by FY2030. It will respond flexibly to environmental regulations and customer needs in each European country.

In India, Suzuki will introduce the SUV battery EV announced at the Auto Expo 2023 in FY2024, with 6 models to be launched by FY2030. Suzuki will provide not only battery EVs but also carbon neutral internal combustion engine vehicles that use CNG, biogas, and ethanol mixed fuels.

 

El Battery EV introduction plan

Region	Financial year of introduction (1 April-31 March)	Forecast by FY2030
		No. of models	Battery EV ratio
Japan	2023	6	20%
Europe	2024	5	80%
India	2024	6	15%

 

• Motorcycles

For small and mid-sized motorcycles, which are used for daily transportation such as commuting to work, school or shopping, the company will introduce battery EV’s from FY2024. It plans to launch 8 models by FY2030 with a raise in the battery EV ratio to 25%. For large motorcycles for leisure purposes, the company is considering adopting carbon neutral fuels.

• Outboard motors

For small outboard motors that are often used in lakes and rivers, the company will introduce battery EVs in FY2024. It plans to launch 5 models by FY2030 with a battery EV ratio of 5%. For large outboard motors used in the ocean, the company is considering adopting carbon neutral fuels.

• New Electric Mobility

Suzuki has proposed a variety of electric mobility options with the electro senior vehicle – a new mode of transportation for people who have voluntarily returned their driver’s licenses – among others. Further examples for the evolution of senior vehicles are the KUPO and the Mobile Mover (Mobile Mover is a registered trademark of M2 Labo) multi-purpose robotic dolly developed in collaboration with M2 Labo. Suzuki Group will take on the challenge of small mobility which supports our lives in new market segments created by the diversification of customer needs and changes in the environment.

• Manufacturing

Suzuki will challenge to achieve carbon neutrality of domestic plants in FY2035.

• Suzuki Smart Factory Creation

The Suzuki Smart Factory Creation demonstrates how manufacturing should be in 2030, so that it continues to become a company that secures people’s means of mobility worldwide. By combining Suzuki’s principle of manufacturing Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty) with digitalization, the company will optimize, minimize, and simplify the flow of data, things, and energy. Through these initiatives, Suzuki will become a lean and carbon neutral organization.

• Initiatives by plants in Japan

The Kosai Plant - Suzuki’s largest production hub in Japan - reduces CO2 emission of painting facilities by 30% through renewal of painting facilities and improvement of painting technologies for efficient and optimal use of energy. The plant also produces green hydrogen from renewable energies including solar power generation. The hydrogen is being utilized for verification test of fuel cell transporter since the end of 2022.

The Hamamatsu Plant – Suzuki’s motorcycle production hub – aims to achieve carbon neutrality in FY2027, earlier than the initial target of FY2030 through reduction of energy use and conversion into renewable energy including the expansion of solar power generation facilities. By utilizing the know-hows earned at the Hamamatsu Plant to other plants, Suzuki will make initiatives to achieve carbon neutrality of all plants in Japan by FY2035.

• Biogas business in India

 

Magyar Suzuki’s Japanese Parent Company expects growth from the Indian market toward FY2030, and thus an increase in total CO2 emission amount is also unavoidable, regardless of reduction in CO2 emission from products. The company will challenge to strike a balance between increasing sales units and reducing total CO2 emission amount. Suzuki’s unique initiative to tackle this challenge is the biogas production. The company makes biogas from cow dungs, which are dairy wastes mainly at India’s rural area. This biogas can be used for Suzuki’s CNG models that account for approximately 70% of CNG car market in India.

The biogas business in India not only contributes to carbon neutrality, but also promotes economic growth and contribute to the quality improvement of the society of India. The company plans to expand the business to other farming areas in regions including Africa, ASEAN, and Japan in the future.

Suzuki, the market leader of India’s automobile market, contributing to carbon neutrality and economic growth of emerging countries, is consistent with the intent of the Paris Agreement, which requires harmony between developed countries and emerging countries for reduction of CO2 emission. Suzuki Motor Corporation believes that it can contribute to its stakeholders throughout the world.

• R&D Structure and Cooperation with Outside Partner

Suzuki headquarters, Yokohama Lab., Suzuki R&D Center India, and Maruti Suzuki will cooperate for efficient development by sharing the development in each field of future technologies, advanced technologies, and mass production technologies. Also, the Suzuki Innovation Center is exploring new connections and innovations for Suzuki to thoroughly take root in India. Suzuki will enhance its manufacturing strength by also cooperating with outside partners including start-up companies, Suzuki Suppliers Association, and cooperation with universities in Japan and India.

The Suzuki Group will deepen its cooperation relationship with Toyota Motor Corporation while continuing to be a competitor and aim for sustainable growth and conquer various issues surrounding the automobile industry. Through the cooperation, the parties will cooperate in development of advanced technologies including autonomous and battery of electrified cars, business expansion in promising emerging countries, efforts for carbon neutrality in India, as well as formation of a recycling-based society that considers the environment.

The Suzuki Global Ventures, a corporate venture capital fund established in 2022, is accelerating the co-creation activities with start-up companies by exceeding the framework of each company and their conventional businesses. The company will make investments in areas that serve to solve customer and social issues and contribute to development of ecosystem that grows with start-up companies.

• R&D Expenses, Capital Expenditures

We will invest a total of 4.5 trillion Yen by FY2030. Of the 4.5 trillion Yen, 2 trillion Yen in R&D, 2.5 trillion Yen in capital expenditures (construction of BEV battery plant and renewable energy facilities). Of the 4.5 trillion Yen, 2 trillion Yen will be electrification-related investments, of which 500 billion Yen will be battery-related investments.

2 trillion Yen is planned to be invested for R&D expenses in areas including carbon neutrality such as electrification and biogas, as well as autonomous.

• Net Sales Target

Consolidated net sales forecast for FY2022 is 4.5 trillion Yen, which is growing at a pace to exceed the 4.8 trillion Yen target for FY2025 set in the mid-term management plan. Suzuki would like to grow in line with the emerging countries by contributing to their growth. It will challenge to double the FY2021 net sales result of 3.5 trillion Yen to 7 trillion Yen in FY2030.

In the midst of once in a hundred years of great transformation, Suzuki believes that it is important to have a sense of “excitement”, “energetic”, and “unique” in its products, even with the challenge to strike a balance between carbon neutrality and contribution to growth of emerging countries. Suzuki automobiles, motorcycles, outboard motors, and electro senior vehicles have always received enthusiastic support from the customers, by being practical yet having emotional characters.

Suzuki employees throughout the world will unite as one to continue the challenges so that the company can deliver products and services that support the daily lives of customers worldwide while being eco-friendly, the one that’s always beside each and every person to depend on, like a lifestyle partner.