Japan
Sustainability Data Book 2024Outline of the Growth Strategy
For FY2030, Suzuki will contribute to the realization of a carbon neutral society and the economic growth of emerging countries such as India, ASEAN, and Africa, with our main business regions, Japan, India, and Europe, as the core. We will focus on creating solutions that are unique to Suzuki, which are to develop products and services focused on the customer, and grow along with the operating countries and regions.
Major Initiatives for FY2030
<Carbon neutrality>
Based on the target date set by each government, Suzuki aims to achieve carbon neutrality in Japan and Europe by 2050 and in India by 2070.
~ Products ~
We will continue our efforts to achieve carbon neutrality targets for each region, based on the concept of expanding customer choices and delivering products and services that meet local needs.
● Automobiles
We have set targets for powertrain ratios in our main business regions of Japan, Europe, and India for FY2030. The ratio of battery EVs in Japan and India is low because we are considering a more realistic approach based on the charging infrastructure and energy situation in each country. We will offer multiple options such as hybrids until EVs become more accessible.
Japan
Europe
India
In India, for example, 70% of the country’s power generation comes from coal-fired power generation, which emits CO2. Therefore, even if EVs become widespread, it will not lead directly to carbon neutrality. For this reason, in India, where the number of vehicles is expected to increase in the future, we will adopt a “multi-pathway” approach of offering not only hybrids but also vehicles that use compressed natural gas (CNG), which emits less CO2 than gasoline, and biogas, which is anticipated to be a key carbon-neutral fuel in the future.
● Motorcycles
For small and mid-sized motorcycles, which are used for daily transportation such as commuting to work, school or shopping, we plan to achieve a battery EV ratio of 25% by FY2030. For large motorcycles for leisure purposes, we are considering adopting carbon-neutral fuels.
● Outboard motors
For small outboard motors that are often used in lakes and rivers, we plan to achieve a battery EV ratio of 5% by FY2030. For large outboard motors used in the ocean, we are considering adopting carbonneutral fuels.
~ Manufacturing ~
Suzuki will strive to achieve carbon neutrality of domestic plants by FY2035.
● Suzuki Smart Factory Creation
We are promoting the Suzuki Smart Factory Creation by drawing out how manufacturing should be by 2030, so that we continue to become a company that secures people’s means of mobility worldwide. By combining Suzuki’s principle of manufacturing “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty)” with digitalization, we will optimize, minimize, and simplify the flow of data, assets, and energy. Through these initiatives, we will become lean and realize carbon neutrality.
● Initiatives by domestic plants
At the Kosai Plant, which is Suzuki’s largest production hub in Japan, efforts are made to reduce CO2 emissions from painting facilities by 30% through renewal of painting facilities and improvement of painting technologies for efficient and optimal use of energy. The plant also produces green hydrogen from renewable energies including solar power generation. At the end of 2022, we started a verification test of fuel cell transporters by utilizing the green hydrogen.
At the Hamamatsu Plant, which is the motorcycle production hub, through reduction of energy use and conversion into renewable energy including the expansion of solar power generation facilities, the plant will now aim to achieve carbon neutrality by FY2027, earlier than its initial target of 2030. By applying the know-hows earned at the Hamamatsu Plant to other plants, we will make initiatives to achieve carbon neutrality of all domestic plants in FY2035.
~ Biogas business in India ~
While we expect the Indian market to grow toward FY2030, we also expect that an increase in total CO2 emission amount is unavoidable, regardless of reduction in CO2 emission from products. We will strive to strike a balance between increasing unit sales and reducing total CO2 emissions.
Suzuki’s unique initiative to tackle this challenge is the biogas business, which develops mass-production and supply systems for biogas that is derived from cow dung, dairy wastes that can be seen mainly in India’s rural area. This biogas can be used for Suzuki’s CNG models that account for approximately 70% of the CNG car market in India.
We signed a three-party agreement with the Indian government agency National Dairy Development Board and Banas Dairy, Asia’s largest dairy manufacturer, to establish five biogas production plants in the state of Gujarat and are making steady progress in the project. We also invested in Fujisan Asagiri Biomass LLC., which generates power from biogas derived from cow dung in Japan, and are beginning its study.
We believe that the biogas business in India not only contributes to carbon neutrality, but also promotes economic growth and contributes to the society of India. We are also looking to expand the business to other dairy farming areas in regions including Africa, ASEAN, and Japan in the future.
As the market leader of India’s automobile market, Suzuki’s contribution to carbon neutrality and economic growth of emerging countries is consistent with the intent of the Paris Agreement, which requires harmony between developed countries and emerging countries for the reduction of CO2 emissions. We believe that we can contribute to our stakeholders throughout the world.
<R&D structure and collaboration with outside partners>
Suzuki head office, Yokohama Labo., Suzuki R&D Center India Private Limited, and Maruti Suzuki will collaborate for efficient development by sharing the development in each field of future technologies, advanced technologies, and massproduction technologies. Also, the Suzuki Innovation Center is exploring new connections and innovations for Suzuki to thoroughly take root in India. We will enhance our manufacturing strength by also collaborating with outside partners including start-up companies, Suzuki Suppliers Association, and cooperation with universities in Japan and India.
We will deepen our collaborative relationship with Toyota Motor Corporation while continuing to be a competitor, and aim for sustainable growth and address various issues surrounding the automobile industry. Through this relationship, we will collaborate in the development of advanced technologies including autonomous driving and batteries of electrified cars, business expansion in promising emerging countries, efforts for carbon neutrality in India, as well as the formation of a recycling-oriented society that considers the environment.
The Suzuki Global Ventures, a corporate venture capital fund established in 2022, is accelerating the co-creation activities with start-up companies by exceeding the framework of each company and their conventional businesses. It will make investments in areas that strive to solve customer and social issues and contribute to the development of ecosystems that grow with start-up companies.
<R&D expenses, capital expenditures>
Over the eight years from FY2023 to FY2030, we will invest ¥2 trillion in R&D expenses and ¥2.5 trillion in capital expenditures, a total of ¥4.5 trillion by FY2030. Of the ¥4.5 trillion, ¥2 trillion will be electrification-related investments, of which ¥500 billion will be battery-related investments.
¥2 trillion is planned to be invested in R&D expenses in areas including carbon neutrality such as electrification and biogas, as well as autonomous driving.
¥2.5 trillion is planned to be invested for capital expenditures in facilities including construction of a BEV battery plant and renewable energy facilities.
The results for FY2023 were R&D expenses of ¥234.2 billion and capital expenditures of ¥321.5 billion.
<Net sales target>
In the previous fiscal year, consolidated net sales reached a record high of ¥5.4 trillion. Furthermore, we are aiming for more than ¥5.6 trillion in the current fiscal year. We would like to grow in line with emerging countries by contributing to their growth, and we will continue to take on the challenge of reaching ¥7 trillion by FY2030.
