TU-TESL

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Due to its poor performance in the Chinese market, in September 2018, Suzuki sold all shares of Changan Suzuki to the automobile and officially withdrew from the Chinese market. At that time, the enterprise said that after withdrawing from China, Suzuki would devote itself to the Indian market, which is more valued. However, at present, Suzuki's overweight in the Indian market has not achieved the expected effect. According to the report recently released by the company, its operating profit in the second fiscal quarter (July to September 2019) reached the lowest level in the last three years, only 55.9 billion yen (about 3.58 billion yuan), down 32% year on year. According to the official explanation, the main reason for Suzuki's poor financial performance is the decline in sales. It is reported that from July to September 2019, Suzuki sold 670000 new cars worldwide, down 20% year on year. As the largest single market in the world, the Indian market contributed 305000 new cars to Suzuki, down 32% year on year. At the beginning of the fiscal year, Suzuki was very optimistic about the trend of the Indian market, and made a forecast of "sales volume up 4% year on year". However, after the announcement of the fiscal quarter, Suzuki has revised the forecast of full color fiscal year sales to "down 20% year on year". Thanks to this, Suzuki's high-level attitude towards the Indian market has also become pessimistic and cautious. At the financial report conference, Suzuki President Junhong Suzuki said that he is no longer optimistic about the Indian economy. What Suzuki should do now is to recover from the trough period in order to pursue sustainable growth in the future. Currently, Suzuki has cut its profit forecast for the full fiscal year by 40% to 200 billion yen (12.83 billion yuan). In fact, since its exit from the Chinese market, Suzuki has been showing signs of sluggish performance for a long time. In the first quarter of fiscal year 2020 (April June 2019), the company's sales volume has declined by 8% year-on-year to 907.5 billion yen (about 58.2 billion yuan); its profit has declined by 53% year-on-year to 40.5 billion yen (about 2.6 billion yuan). At that time, Suzuki's global sales volume was 738000, down 14% year-on-year, including 20% in India and 4% in Japan. In 2012, Suzuki withdrew from the North American market; in 2018, Suzuki announced to withdraw from the Chinese market. After losing the world's first and second largest single market in succession, Suzuki bet all its "treasures" on the Indian market. Faced with the current economic situation in India and the decline of the car market, I wonder if Suzuki regrets its "too single-minded".