<Special Topics> Suzuki Mid-Term Management Plan (April 2021 to March 2026)
- “Smaller, Fewer, Lighter, Shorter, Neater” –
Suzuki celebrated its 100th anniversary in March 2020. Over the past 100 years, we have taken on many challenges, including looms, motorcycles, automobiles, and outboard motors. Based on the unwavering commitment to “Focusing on the customer” inherited from our founder, we will make even greater efforts to provide customers with the value of “Sho-Sho-Kei-Tan-Bi” through our products and services.
Suzuki will stay focused on the customer throughout the next 100 years, and with our “Sho-Sho-Kei-Tan-Bi” concept, we strive to create value-packed products and services. We would like to convey our thought together with the slogan of “Small cars for a big future.”
●Review of the previous mid-term management plan
- Net sales target achieved in FY2017 and FY2018
- Operating profit ratio target achieved in FY2016 to FY2018
Target not achieved in its final year of FY2020
(Review and determination)
- Frequent quality problems and recalls
- Fraud in fuel efficiency tests and final inspection
- Delay in CASE development
Assure people’s “means of mobility”
- Mini-cars in Japan function as local transportation and is an indispensable means of living.
- As a mobility company, Suzuki contributes to the environment providing small products worldwide.
Emerging economies continue
to be a pillar of growth
- Providing economical and quality products and services to customers in emerging countries
- Emerging economies as a pillar of Suzuki’s future growth, anticipating the medium-and long-term development
●New mid-term management plan
Amid the global trend toward carbon neutrality, it is necessary to place even greater emphasis on quality as shift to electrification and software development are to take place. Therefore, we will give priority to three issues: CO₂ emissions in use, CO₂ emissions from production, and quality assurance.
1. CO₂ emissions in use
With regard to CO₂ emissions in use, we will develop electrification technologies by 2025, fully implement these technologies in products from 2025, and make full-scale quantitative increase from 2030. In order for Suzuki to prevail in 2025 and beyond, we will intensively engage in the development of electrification technologies. These include a hybrid system for mini, compact, and commercial vehicles as well as plug-in hybrid models evolved from Suzuki’s hybrid system. In the field of electric vehicles (EVs), we will develop mini and compact EVs. Joint development will also be carried out with Toyota Motor Corporation.
2. CO₂ emissions from production
With regard to CO₂ emissions from production, we will advance and expand the use of existing technologies and develop new technologies during the period covered by the mid-term management plan. We will also engage in field testing to achieve zero CO₂ emissions at the Hamamatsu Plant by 2030. At the same time, we will apply our results to all other production sites and take concerted efforts toward achieving zero CO₂ emissions in 2050.
3. Quality assurance
As a manufacturer, we will continue to work toward the development of new technologies. Nonetheless, technological excellence alone is not sufficient. The resulting products will not be accepted by customers unless they excel in quality and affordability. Suzuki’s business can only exist when customers buy, use, and are satisfied with our products.
We will strive to prevent the occurrence, early detection, and outflow of quality problems by promptly investigating the causes and taking countermeasures, producing products with reduced variants, and expanded traceability management.
●Management performance targets
|FY2019 Result||FY2020 Result||FY2025 Target|
|Performance||Net Sales||3.4884 trillion yen||3.1782 trillion yen||4.8 trillion yen|
|Operating income margin||6.2%||6.1%||5.5%|
|Investment||R&D||148.1 billion yen||146.2 billion yen||1.0 trillion yen/5 years
|Capital Investment||236.4 billion yen||170.9 billion yen||1.2 trillion yen/5 years
|Global sales||Automobiles||2.85 million units||2.57 million units||3.7 million units|
|Motorcycles||1.71 million units||1.54 million units||2.0 million units|
Note. Exchange rate assumptions ... US $1 = 104 yen, 1 Euro = 124 yen, 1 INR = 1.42 yen
●Global sales target