Suzuki Motor Corporation has unveiled its New Mid-Term Management Plan for fiscal years 2025-2030. The announcement, made by Suzuki Motor Corporation in Japan, comes as the company transitions into a new phase under the leadership of President Toshihiro Suzuki.
Suzuki’s leadership shift follows the gradual departure of former Chairman Osamu Suzuki, who stepped back over the past three and a half years. This transition marks a strategic evolution in the company’s management approach. While maintaining its foundational principles, the company is also adapting to meet modern business demands.
At the core of Suzuki’s strategic vision lies an approach described as “unchanged yet further strengthened.” This framework, referred to as Suzuki’s Operating System (OS), integrates the company’s foundational Mission Statement with its guiding philosophies: Sho-Sho-Kei-Tan-Bi (efficiency and simplicity), Genba, Genbutsu, Genjitsu (3G) (on-the-ground decision-making), and YARAMAIKA (entrepreneurial spirit).
Suzuki’s updated strategy aligns with the Corporate Governance Code, which saw significant revisions during the leadership transition in 2021. The company has sought to enhance its management quality and global competitiveness while adhering to these governance principles.
Review of the Current Mid-Term Plan (FY2021–FY2025)
Under the previous mid-term plan, Suzuki achieved revenue and profit targets ahead of schedule, driven by an improved sales mix, higher quality standards, and favorable exchange rate fluctuations. However, challenges remain, including declining market share in India and intensifying competition in the electric vehicle sector.
Key accomplishments include: Increased revenue and profit despite missing initial sales volume targets. Accelerated carbon neutrality initiatives, including investments in electrification. Strengthened the foundation for future growth amid evolving market dynamics.
Given these shifts, Suzuki recognizes the need for a recalibrated strategy to sustain its competitive edge.
Vision for the Future: “By Your Side”
Suzuki’s new corporate slogan puts its vision of ‘focusing on the customer’, “which we have cherished since our founding, into By Your Side. Team Suzuki will continue to deliver valuable products while aiming for “an infrastructure mobility closely connected with people’s lives.” The company shared.
Suzuki’s new mission, By Your Side, emphasizes its role as a reliable presence in the lives of customers and society. The company aims to develop an infrastructure-oriented mobility ecosystem that stays closely connected to people’s everyday needs. This vision encompasses: Enhancing governance to ensure sustainable growth and corporate value. Leveraging AI to improve efficiency across business operations. Strengthening financial strategies to boost capital efficiency and stakeholder relationships. Expanding investments in human capital and cutting-edge technologies.
Business Strategy: Dominating the Indian Automobile Market
India remains a focal point of Suzuki’s growth strategy. The company aims to solidify its market leadership with an ambitious target of capturing 50% of the Indian automobile market while increasing annual manufacturing capacity to 4 million units. India is also positioned as a global export hub.
Key initiatives include: Strengthening product offerings in the SUV and MPV segments to meet evolving customer demands. Expanding the battery electric vehicle (BEV) lineup, starting with the e-VITARA and aiming to launch four BEV models by FY2030. Introducing a range of alternative fuel vehicles, including hybrids (HEVs), compressed biogas (CBG), and flex-fuel vehicles (FFVs), tailored to local market conditions. Enhancing Maruti Suzuki’s product development capabilities to align with Indian consumer preferences. Expanding Infrastructure and Production.
To meet India’s growing demand and strengthen its role as an export hub, Suzuki is investing heavily in its production facilities. Key projects include: New manufacturing plants in Kharkhoda and Gujarat, expanding supply chain capabilities. A gradual scale-up to achieve a 4 million-unit production capacity in response to market conditions.
Additionally, Maruti Suzuki is refining its retail strategy by clearly defining the roles of its two sales channels: Nexa, catering to premium customers, and Arena, serving a broader consumer base. This differentiation aims to enhance customer experience and brand positioning. By integrating advanced technologies, optimizing governance structures, and expanding its market presence in India, the company aims to navigate the evolving landscape of the global automotive industry while remaining firmly “by your side.”