India slowdown weighs on Suzuki's global production

The ongoing slowdown in India automobile retail sales is making its presence felt as far as Japan. Suzuki Motor Corporation (SMC) today reported its global production numbers for June and first-half of 2019.

As per the company data, a total of 219,542 units were produced in June, a decline of 17 percent YoY, down for the fifth consecutive month. This includes global production, which declined 16.4 percent to 147,377 units. SMC’s statement says, “Overseas production volume decreased year-on-year owing to decrease in countries including India and Thailand.”

Production numbers for the first half of 2019 (January-June 2019) were 1,610,174 units, down 8.8 percent. SMC says, “Japan production volume decreased year-on-year owing to decrease in production for both domestic and exports. Overseas production volume decreased year-on-year owing to decrease in countries including India and Indonesia.”

India is SMC’s largest overseas production hub and also its largest sales volume contributor. Maruti Suzuki, the passenger vehicle market leader in India, is currently witnessing sharply slowing sales, a phenomenon which has affected the entire automobile industry in the country.  

In Japan, its home market, Suzuki Motor sold a total of 54,217 units in June, down 14.4 percent, which also marked the first decline in 15 months.  The drop in sales is due to a decrease in retail of models that included the Wagon R, Alto, Swift and Xbee.

Also read: Maruti Suzuki Q1 profit falls 27.3%, sharpest decline in 4 years