Suzuki Motor

Suzuki Motor Corporation (TYO: 7269), headquartered in Japan, is a multinational automotive manufacturer. Incorporated in 1920 as a loom manufacturer, the company entered the automotive industry in 1952. Suzuki generated JPY 4,612 billion (USD 34 billion) in revenue in FY2023 (year ended 31 March 2023).

The company’s operations are classified into four primary segments: Automobile business (focused on the production and sale of mini vehicles, sub-compact vehicles, and standard-sized vehicles; ~90% of total revenue in FY2023), Motorcycle business (motorcycles and all-terrain vehicles; ~7% of total revenue in FY 2023), Marine business (outboard motors; ~3% of total revenue in FY2023), and Other business (motorized wheelchairs, solar power generation, and real estate). 

In terms of revenue, Suzuki’s single largest market is Japan, where the majority of its production takes place, and accounted for ~33% of total revenue in FY2023, followed by Asia (~50%), Europe (~8%), and Other (~9%). Suzuki had the highest market share for automobiles across 12 countries in FY 2023 across Asia (India), Latin America (Barbados), and Africa (Nigeria). 

The company’s FY2024 guidance for top-line growth stands at JPY 5,200 billion (USD 38.4 billion), up 12.0% YoY, while operating profit is expected to reach JPY 430 billion (USD 3.2 billion, up 22.5% YoY) and the operating margin is estimated to reach 8.3% vs. 7.6% in FY2023. 

Suzuki plans to increase EV production by FY2030 to launch five to six new SUV and passenger mini-vehicle models in Japan, Europe, and India. In the decades ahead, the company aims to achieve carbon neutrality in Japan and Europe by FY2050 and in India by FY2070.