Suzuki to withdraw from Chinese auto market

Nissan Motor Co.'s new EV model "Sylphy Zero Emission" is assembled in Guangzhou, China, on Aug. 27. (Credit: The Yomiuri Shimbun)

Suzuki Motor Corp. has announced that it will transfer its entire 50 percent stake in the joint venture company Chongqing Changan Suzuki Automobile Co. to its partner in the enterprise, Chongqing Changan Automobile Co.

Suzuki previously dissolved a joint venture with another Chinese automaker in June, and plans to withdraw from production in that country.

"We've made efforts to cultivate the Chinese market. However, due partly to the shifting of the Chinese market toward larger vehicles, we've decided to transfer all equity to Changan Automobile [Chongqing Changan Automobile]," Suzuki Chairman Osamu Suzuki said in a statement Tuesday.

(Credit: The Yomiuri Shimbun)

Chongqing Changan Suzuki will continue production and sales of Suzuki brand vehicles.

Suzuki formed the joint venture company with Chongqing Changan Automobile in 1993 and another with Jiangxi Changhe Automobile Co. in 1994 to produce and sell its vehicles in China. Suzuki transferred all its shares in the joint venture with Jiangxi Changhe to the Chinese partner in June.

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