Suzuki readies cuts in China output as sales slump
Suzuki Motor Corp. will need to adjust production in China as output and capacity stand at roughly double the number of vehicles it is selling in the country, President Toshihiro Suzuki said on Wednesday.
The Japanese automaker has annual production capacity of 500,000 cars at two assembly plants in the world's biggest auto market, including one that just started operating in April last year.
But Suzuki's China sales have faltered recently due to fierce competition and declining overall demand amid a slowing economy.
Suzuki sold around 250,000 vehicles in China during its latest fiscal year. The Japanese company has sold roughly 109,600 vehicles in the country this year through July, a drop of 19 percent year on year.
Light-vehicle deliveries in China, the world's largest car market, rose a meager 0.4 percent in the first seven months and are predicted to grow just 3 percent this year, less than half the 2014 growth rate, the China Association of Automobile Manufacturers says.
But Suzuki's China sales have faltered recently due to fierce competition and declining overall demand amid a slowing economy.
Suzuki sold around 250,000 vehicles in China during its latest fiscal year. The Japanese company has sold roughly 109,600 vehicles in the country this year through July, a drop of 19 percent year on year.
Light-vehicle deliveries in China, the world's largest car market, rose a meager 0.4 percent in the first seven months and are predicted to grow just 3 percent this year, less than half the 2014 growth rate, the China Association of Automobile Manufacturers says.
