India a big contributor to Suzuki’s FY2015 sales

Suzuki Motor Corporation today announced its financial results for April 2015 to March 2016 (FY2015-16). The consolidated net sales of this fiscal year increased by ¥165.2 billion (Rs 10,138 crore), up 5.5% to ¥3,180.7 billion (Rs 195,189 crore) compared to the previous fiscal year.

The Japanese domestic net sales decreased by ¥46.7 billion (Rs 2,866 crore), up 4.3% to ¥1,047.9 billion (Rs 64,306 crore) year-on-year (YoY) owing to the impact of the hike in the light motor vehicle tax and decrease in the OEM sales. The overseas net sales increased by ¥211.9 billion (Rs 13,004 crore), up 11% to ¥2,132.8 billion (Rs 130,883 crore) YoY mainly owing to the increase in the automobile sales in India.

In terms of the consolidated income, the operating income increased by ¥15.9 billion (8.9%) to ¥195.3 billion year-on-year thanks to the increase in income in India. The ordinary income increased by ¥14.8 billion (7.6%) to ¥209.1 billion year-on-year. The net income attributable to owners of the parent company increased by ¥19.8 billion (20.4%) to ¥116.7 billion year-on-year.

The overseas automobile net sales increased year-on-year mainly due to the sales contribution of the Vitara in Europe and increase in India and Pakistan. Consequently, the net sales of the automobile business increased by ¥176.5 billion (6.5%) to ¥2,878.5 billion year-on-year. The operating income increased by ¥20.8 billion (12.1%) to ¥192.6 billion year-on-year as a result of the increase in income in India.

In the motorcycle business, net sales decreased by ¥16.6 billion (6.6%) to ¥233.9 billion year-on-year mainly due to the decrease in Indonesia, despite sales contribution of the new road sportbike GSX-S1000 and the Indian Gixxer. The operating loss of ¥0.7 billion in the previous fiscal year became an operating loss of ¥10.2 billion partly owing to the quality-related expenses.

As for the operating income by geographical areas, Japan decreased by ¥5.9 billion (6.5%) to ¥84.8 billion year-on-year mainly owing to the increase in R&D expenses and depreciation. However, Asia increased by ¥22.2 billion (27.2%) to ¥103.8 billion year-on-year mainly owing to the increase in the income in India and Pakistan.

Forecast for FY2016 sees India and Europe as key growth markets

For the next fiscal year, Suzuki says it foresees an increase in sales of automobiles mainly in Europe and India. However, it also projects a decrease in sales and income results following the appreciation of the yen.