Suzuki shuts down Chinese plant over poor sales of Kizashi model

Article by Christian Andrei, on December 14, 2010

Apparently, not every carmaker that has business in China has reaped overflowing success. Suzuki is one such example as it has decided to shut down its office in Shanghai since the joint venture it had meant to enter with Changan Auto failed to prosper.

A report by indicated that Suzuki chose to terminate local operations because of the disappointing sales of the Kizashi, which it had the highest expectations for.

Suzuki actually already is more attentive to growing markets such as India where it plans to establish the foundation for a big export market.

Last November, Suzuki’s Indian division requested for government support to improve the infrastructure and enable companies that want to expand their business to invest the required money to attain their goals.

A report by The Economic Times revealed that SMC Chairman Osamu Suzuki had said at the Nikkei Business Summit that India is being considered as an export hub for Europe, Africa and West Asia (Middle East).

Some industry observers said that Suzuki might gain from the deal it entered with Volkswagen to grow bigger in smaller markets; however, Suzuki has denied this.

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