Manufacturer: Suzuki

Total sales 2013: 2,710,888

Headquarters: Hamamatsu, Japan

Global market share: 3.3%

Kei car sales continue to soar…

The Suzuki Motor Corporation has one of the most complex management structures of all the automotive manufactures, incorporating over 100 subsidiaries across a global network of manufacturing and operational centres.

The Japanese brand has enjoyed global sales growth for three consecutive years, thanks largely to Suzuki’s strategy to manufacture bespoke models for each of its major markets, and the growing popularity of the brand in the global arena.

Maruti Suzuki India Limited, commonly referred to as Maruti, is the brand’s most successful subsidiary and represents the Corporation’s biggest global market, achieving 1,271,500 sales in 2013, up +22% over 2012 figures. The Maruti Alto 800 was the best-selling car in India in 2013, winning over buyers with its low cost of ownership to capture 137,406 sales last year. The Maruti Suzuki Swift also performed well in the market, with the premium hatchback accounting for 106,236 Indian sales in 2013.

While Suzuki continues to expand into international territories including South Africa, South America andSouth East Asia, the brand withdrew from the United States and Canada in late 2012 after a period of extended decline. This accounts in part for the drop in the global sales figure from 2012 to 2013 as Suzuki wound down its American operations. Commentators cite Suzuki’s core line up of small cars as a factor in the brand’s struggle to maintain a foothold in a country where saloons and minivans dominate, coupled with a poorly managed dealer network and strong competition from other emerging brands.

While its small car offering may have cost the brand sales in the US and Canadian markets, it’s range of mini, or Kei cars, are big business in the home market of Japan. The Kei car segment emerged in 1949, when the Japanese government mandated new Kei car (keijidosha, or light automobile) rules, designed to encourage smaller, more efficient vehicles with commensurate tax, insurance and parking benefits.

Suzuki has established itself as a market-leader in Kei car technology, producing a range of variants specifically for Japanese buyers. An intimate understanding of the real world requirements of Japanese customers helped the brand capture its highest ever sales volume of mini vehicles in 2013, partly owing to the impact of three new models: Spacia, Hustler, and Carry, to achieve 110% of its sales target for the segment.

Another possible reason for the drop in global sales from 2012 to 2013 was Suzuki’s decision to prioritise the European market, a strategy reflected in a +55% sales uplift for the territory during this period. The UK represents the most significant market for Suzuki in Europe, accounting for 33,080 total sales in 2013.

The new S-Cross crossover, Suzuki’s challenger to the all-conquering Qashqai, was well received by customers and journalists alike following its launch in late 2013, and accounted for 15% of the UK sales mix in the first half of this year. Suzuki also reported some success for the Swift 4×4 with customers in the public sector who require an economical but rugged vehicle, particularly during the winter.

Fleet-friendly models ready to launch…

Suzuki has a busy schedule of launches planned for the next two years, with a number of key models waiting in the wings. First up is the launch of the refreshed Maruti Swift to the Indian market in November 2014. Updates include the integration of daytime running lights and a redesigned grille, while the interior has been given a nip/tuck with an upgraded infotainment and navigation system for the top trim levels.

Close on its heels is the European launch of the Celerio, Maruti Suzuki’s budget city car, which is due to arrive in the UK in January 2015. While the Celerio will primarily by a retail model, Suzuki hopes to capture UK business sales with a strong contract hire proposition and targeted marketing to the public sector. Suzuki claims best-in-class C02 emissions of 85g/km for the model, produced by a 990c three-cylinder petrol engine developing 67bhp. The Celerio is billed as a more spacious Splash with the price and economy of a smaller, cheaper Alto, and is ultimately expected to replace both models in the brand’s lineup.

Suzuki first teased its iV-4 concept at the Frankfurt Show in 2013, outlining plans for a compact crossover to rival the Nissan Juke. The iV-4 features the carmaker’s trademark SUV clamshell hood, as on th Grand Vitara and the Jimny-inspired five-slotted front grille, but adds detailing such as heavily sculpted lines and a fog light with built-in laser sensor on the roof. It also taps into the trend for vehicle personalisation, with a choice of exterior parts, colour and texture to be offered.

The production model will offer 4×4 capabilities in the form of the ALLGRIP system, and Suzuki promises class-leading CO2 emissions although exact figures have not yet been made available. The model will be unveiled by the Magyar Suzuki Corporation in 2015 before going on sale to Europe towards the end of the year, and should be well placed to capture both retail and corporate sales in a growing sector.

It is unlikely to that an alternatively-fuelled Suzuki will swell the ranks in the near future, however. 'The Swift Range Extender has been under evaluation in Japan for at least a year, but there are no plans to introduce it in Europe. Suzuki is planning to introduce hybrid adaptation in the coming years, although currently we are concentrating on high efficiency and lightweight petrol engines,' reveals Andrew Wale of Suzuki GB.

View from the top

Andrew Wale, national corporate sales manager at Suzuki GB, reveals how the S-Cross has revitalised the brand’s fleet offering and why Suzuki appeals to savvy business customers.

How has Suzuki performed in the UK market so far in 2014?

Sales in the UK are up 17% year-on-year with a figure of 21,890 units at the end of July. S-Cross has certainly helped and represents over 3,300 units or 15% of the current sales mix.

As a traditionally retail-focused brand, does the fleet-friendly S-Cross signal a new era for Suzuki?

The S-Cross has signalled a new era and has helped us double our fleet sales over the past 12 months. It has provided an excellent platform for the launch of the new SUV and Celerio in early 2015. Achieving competitive S-Cross residual values and reducing our SMR costs have been key to achieving competitive monthly contract hire and PCH rentals. Combine this with high levels of specification and low BiK’s which appeal to business customers and you have an appealing proposition for fleets.

What sorts of fleets are drawn to Suzuki, and why do you think this is?

Historically Suzuki has been popular with public sector fleet customers – models such as the Swift and the SX4 4×4 provide the ideal mobility solution in remote areas, and with salary sacrifice customers looking for reliable, economical, competitively priced stylish cars with high levels of standard specification. The S-Cross has created interest from a much wider range of fleet customers, and appeals to customers who are more motivated by what they get for their money rather than the prestige of a (more expensive) premium marque’s badge.