Suzuki Motor Cuts Full-Year Production Forecast, Raises Earnings Outlook

Suzuki Motor Corporation has cut its automobile and two-wheeler production forecast for financial year 2024 (April 2024-March 2025), according to a presentation. However, it has raised its forecast for all consolidated earnings metrics for the ongoing year, based on the results up to the third quarter, and changes in the business environment. 

The Japanese automaker expects to produce 3.30 million automobiles in FY24 compared to the earlier forecast of 3.31 million units. This is higher than its output of 3.27 million automobiles in FY23. Similarly, the company has also cut its two-wheeler production forecast to 1.99 million units from 2 million units estimated earlier. In FY23, the company produced 1.91 million two-wheelers.

In the passenger vehicle segment, Suzuki Motor currently produces models such as Alto, Swift, Grand Vitara and Fronx, among others. On the two-wheeler front, it offers Gixxer, V-Strom, Burgman, Access, and Hayabusa branded products.   

The Japanese automaker has revised its automobile production forecast for all regions for FY24. In Asia–which contributes to nearly 65% of the company’s overall output–it has revised the production estimate to 2.18 million units for FY24, from 2.19 million units earlier. In Japan, it expects to produce 1.01 million units, compared to 1.02 million units, the majority of these will be completely built units. Similarly, its output from Europe is seen down at 104,000 units from an earlier forecast of 105,000 units. In FY23, the Suzuki Motor Corp produced 2.10 million units in Asia, 1.01 million units in Japan, and 156,000 units in Europe. 

On the automobile sales front, the company has maintained its forecast of 3.24 million units for FY24, with slight revision in the region-wise sales contribution. It has cut its Asia sales forecast by 4,000 units to 1.99 million units, and contribution from other regions by 2,000 units to 318,000 units. However, it expects automobile sales from Europe at 213,000 units, against 207,000 predicted earlier. Barring Europe, Suzuki Motor expects to report on-year growth in automobile sales from all regions in FY24. 

In the case of two-wheelers, the Japanese manufacturer has revised the production forecast for three regions. While it expects output from Asia at 1.80 million units in FY24 compared to earlier forecast of 1.82 million, it has raised its production forecast for Japan by 1,000 units to 92,000 units, and that for other markets to 100,000 units from earlier prediction of 92,000 units. The company expects to report year-on-year growth in output of two-wheelers in Asia and other markets, however, it expects output from Japan and North America to be lower.

“Regarding motorcycles, the production volume was revised downward by 11,000 units, reflecting reduced production from China,” Suzuki Motor said. On the overall two-wheeler sales front, the Japanese company has revised its forecast for FY24 upward by 27,000 units to 2.04 million units, reflecting strong sales in India. Barring Japan, the company expects its two-wheeler sales to grow year-on-year in all other markets. 

In Oct-Dec, Suzuki Motor reported low-single digit growth on year growth in automobile  production and sales. Its sales in Asia, Japan, and other markets (Latin America, Africa, Middle East and Oceania) increased during the quarter, however, it saw slight decline in India and Europe. “Sales volume increased in Japan, Pakistan, Middle East etc…In the Middle East, Africa and Latin America, the volume of export models from India increased…we achieved accumulated exports of 3 million units (from India) in November last year. The progression from 2 million to 3 million accumulated exports was achieved in just 3 years and 9 months,” the company said.  

Compared to the automobile segment, Suzuki Motor reported mid-single digit growth in production and sales of two-wheelers during the December quarter. In India, its scooter sales were strong, and the growth rate exceeded that of the overall market. To cash in on this demand trend, the company introduced electric and new internal combustion engine variants of its scooter Access, at the Bharat Mobility Global Expo 2025.

On the earnings front, the Japanese automaker has raised its forecast for all consolidated metrics for FY24. The company expects to clock a consolidated topline of 5.7 trillion yen for FY24, compared to 5.6 trillion projected earlier. It has also revised its operating profit upwards of 40 billion yen to 590 billion yen. It has raised its operating profit forecast on account of the effect of foreign exchange rate, higher volumes and richer mix. The company also expects to earn a net profit of 370 billion yen in FY24 compared to earlier estimate of 350 billion yen, and sees operating margin expand by 60 basis points to 10.4%. 

In Oct-Dec, Suzuki Motor clocked a consolidated net profit of 311.7 billion yen, on a topline of 4.28 trillion yen. While its revenue rose by nearly 12% on year, its bottomline jumped by 32%. Even on the operating profit front, the company registered growth of 29% on year to 479.7 billion yen. The company reported strong performance on the back of higher sales, price revision, rich product mix, and depreciation of yen against dollar, euro and rupee.  

In India, the company’s largest market by sales and revenue, the automaker posted 12.6% on-year growth in its standalone net profit for the quarter ended December. Its bottomline for the period came in at Rs 3,525 crore, against Rs 3,130 crore in the year-ago period. Revenue from operations during the quarter rose 15.5% on year to Rs 36,802 crore.