Asian Sales Help Suzuki Maintain Profit Run

HAMAMATSU, JAPAN – May 12, 2009: Strong sales in India and throughout the Asian region have helped Suzuki Motor Corporation (SMC) become one of the few automobile makers to record a profit in 2008.

It ensured SMC maintained its streak of recording a profit every year since 1950.

SMC Corporate Planning Department General Manager Seiji Kobayashi this week said the company would report a profit of 27.4 billion yen ($US280 million) for the 2008 fiscal year.

Mr Kobayashi said the result was due to strong sales in India – where total sales for the period were up 3.5 per cent – and limited exposure to the dramatic drop in car sales in the US.

He said Suzuki was well placed to handle the unique market conditions with its strong portfolio of small vehicles.

In Japan, Suzuki continued its strong performance in the mini-vehicle market with total market share of 32 per cent, up 1.0 per cent year on year.

That performance helped lift Suzuki to number three for total sales in Japan in the last fiscal year, ahead of Honda, Mazda and Mitsubishi.

In Europe, the introduction of the Splash and Alto mini-vehicles have seen Suzuki become one of the best performing brands, with year to date sales down 6.9 per cent while the market is down more than 17 per cent.

In Australia, Suzuki recorded its sixth straight record year in 2008, with total sales of 22,523 vehicles for an increase of 4.4 per cent.

On a consolidated basis, total net sales for the 2008 fiscal year were down 14.2 per cent to 3 trillion yen.

Global production for the period was down 5.4 per cent to 2,493,657 units, which represented the first year on year decrease in eight years.

For the 2009 fiscal year, SMC has predicted a 10 billion yen group operating profit and a net profit of 5 billion yen.