Suzuki Motor Corporation has exited the Chinese market after struggling with low sales lately. The move to exit China was first reported back in June when Suzuki terminated its joint venture with one of its Chinese partners, Changhe Suzuki.
The company famous for its minicars agreed to transfer the remaining 50% stake in Changan Suzuki to Chongqing Changan Automobile, according to a report by Bloomberg.
According to a statement released by the company, Suzuki Chairman Osamu Suzuki said, “Approximately 25 years ago, we launched the Alto in China, and since then we have made efforts in cultivating the Chinese market. However, due partly to shifting of Chinese market to larger vehicles, we have decided to transfer all equity to Changan Automobile.”
In China, the market share of cheap small cars dropped to 6.7% in 2017 from 35% in 2003, due to Chinese families now favouring larger sedans and SUVs. The Suzuki Vitara and S-Cross did very little to save the company as well.
Despite that, Chongqing Changan said that the company will continue to support Changan Suzuki’s operations and they will continue to sell Suzuki-branded vehicles and aftersales support.