Suzuki Targets Africa, Aims for 20 Percent Sales Increase

Suzuki cars are loaded onto freight trains at the Hansalpur factory in India. Suzuki aims to increase sales in Africa to 150,000 units by fiscal year 2030. (Kyodo News)

JAKARTA - Suzuki Motor Corp. is starting to look at Africa as its next big market. The Japanese carmaker is targeting sales in the continent to rise by about 20 percent to 150,000 units in fiscal 2030.

Quoted from a report by Kyodo News, Saturday, June 6, Suzuki sees Africa as "the next India". The point is clear: a large market, the road conditions are not always smooth, and consumers need a strong, economical car, and the price is still reasonable.

For Suzuki, Africa is not a small market. Its population has exceeded 1.5 billion, larger than India. By 2050, Africa's population is expected to reach 2.5 billion.

Currently, the new vehicle market in Africa is around 1.4 million units per year. Suzuki sells around 127,000 units in the region. Most of its cars are produced in India, which is geographically closer to Africa than Japan. Suzuki's market share in Africa is around 9 percent.

Suzuki is now focusing on sub-Saharan Africa. In Ivory Coast, sales of the Dzire continue to grow. The fuel-efficient compact car is in demand as online transportation service demand increases, while public transportation options are still limited.

In South Africa, the Fronx model is one of the mainstays. This SUV is in demand because its driving performance is considered good. Suzuki also sees Nigeria and Ethiopia as promising markets because their populations and economies are expected to grow rapidly.

This pattern is not new for Suzuki. In the 1980s, the company was the first to enter India compared to many of its competitors. The result was huge. Suzuki then became the leading car manufacturer in the country.

Now the recipe is tried again in Africa. Enter early, build a network, and take care of the market. Not luxurious, but suitable for Suzuki's strong character in small cars and emerging markets.

According to Kyodo News, Suzuki last year became a sponsor of one of the popular football competitions in Africa to strengthen brand recognition. The company also plans to add dealers and maintenance workshops.

But Suzuki's road will not be empty. Chinese car manufacturers are also getting more aggressive in Africa. The competition is expected to get hotter after it was revealed in January that Chery Automobile Co. plans to take over Nissan Motor Co.'s factory in South Africa.

Africa is starting to be seen as a new market that is difficult to ignore. The market is not as big as China, the United States, or Europe. But the growth space is wide. Consumers are increasing. The economy is moving. The need for affordable cars is also still large.

Yusuke Kato, Suzuki's executive in charge of its African business, said the company wanted to build trust and long-term relationships with customers.

"We want to grow trust and build long-term relationships with customers," he said.