Suzuki has announced that they have terminated their Changhe Suzuki joint venture in China. At the same time there are unverified reports claiming that Suzuki is in talks with its second joint venture, Changan Suzuki, to dissolve the joint venture.
The Changhe Suzuki joint venture was established in 1995 in Jiangxi, while the second joint venture, Changan Suzuki was founded in 1993 in Chongqing.
The Changhe Suzuki joint venture was responsible for producing models like the BeiDuoXing and BeiDuoXing X5, both were derived from the Suzuki Wagon R.
Meanwhile the Changan Suzuki joint venture currently produces models like the Alivio and Vitara.
Combined production of both joint ventures amounted to just 86,000 in the 2017 fiscal year, a 70% drop from its peak in 2010.
The decline in demand for Suzuki models is a result of the growing economy of China, where Chinese buyers generally choosing larger or more premium vehicles, a segment that is untapped by Suzuki.