Suzuki Gains as China Exit Allows Carmaker to Focus on India
- Japanese brand became victim of China’s fast-changing market
- Focus on core areas such as India has strategic merit: Goldman
The Maruti Suzuki logo is displayed on a vehicle at a dealership in New Delhi.
Photographer: Sanjit Das/BloombergThis article is for subscribers only.
Shares of Suzuki Motor Corp. advanced after the Japanese carmaker said it’s exiting China, abandoning a market where it struggled to gain traction and allowing it focus on its stronghold India.
The departure highlights the cut-throat nature of the Chinese market, where quick changes in customer tastes can leave carmakers exposed. Suzuki’s lineup of mainly smaller cars became less competitive after consumers in the world’s biggest auto market shifted purchases to larger sedans and sport utility vehicles amid rising incomes.