Suzuki Closes China Office in Shanghai

While others are looking into ways to boost operations in China, Suzuki recently decided to close its Chinese office in Shanghai because the joint venture it intended to form with Changan Auto bit the dust. It appears that poor sales are the main reason behind the decision to shut down local operations, according to a report by gasgoo.com, after Kizashi, the model that is expected to generate the biggest sales, failed to raise to the expectations in the last months.

Suzuki on the other hand pays more attention to emerging markets such as India where it intends to set the foundation for a huge export market. Back in November, representatives of the Indian division belonging to Suzuki asked for government support to improve the infrastructure and thus allow companies looking to expand their business to invest the necessary money for reaching their goals.

"For Europe, Africa and West Asia (Middle East), we are looking at India as an export hub," SMC Chairman Osamu Suzuki said at the Nikkei Business Summit according to a report by The Economic Times. "As we want to use India as an export hub, ports are very important. We would like to request the government to improve them," he added.

And although some voices familiar with the matter hinted that Suzuki could benefit from the agreement it signed with Volkswagen to grow bigger in smaller markets, the Japanese manufacturer confirmed this is not the case.

"Suzuki Japan and Volkswagen Germany are in talks. Maruti Suzuki has nothing to do with those talks," the Suzuki official stated, emphasizing that the two won't mix their businesses.