SUZUKI: RAMPANT GROWTH

In the nine months of its current fiscal year through to 31 December 2022, Suzuki Motor Corporation’s motorcycle business has staged a remarkable recovery, selling more bikes in every overseas market except Europe. BDN financial editor Roger Willis reports.

Total revenue from the period climbed by 37.6% to £1.591bn. Associated operating profit considerably more than doubled, a staggering 148.8% up to £144.6m. Global unit sales volume recovered by 16.7% to 1.414 million bikes. 

Year-to-date production was 9% up to 1.419 million. Only 83,000 of these machines were made in Japan — nevertheless a 15.3% improvement on domestic output by the end of Q3 a year earlier. Asia was responsible for the bulk, 6.5% higher at 1.254 million. Production at other overseas plants accelerated by 63.2% to add 80,000 and a further 2000 were assembled in North America.    

Asian sales were the big earner with turnover rising by 37.3% to £786m, on the back of a 19.6% volume increase to 1.166 million bikes. Suzuki’s wholly-owned motorcycle subsidiary in India was the largest contributor. Indian revenue put on 49% to £417m, while wholesale bike shipments grew by 25.5% to 549,000. Notable results elsewhere in Asia saw Chinese volume lift by 6.7% to 337,000 and the Philippines 30.3% up to 153,000.

Among developed-world markets, North America was the sole unalloyed beacon of prosperity. Revenue rocketed by 80.1% to £239m and sales volume was 14.2% up to 25,000. European performance was less attractive. Although a better model mix and higher prices delivered 29.9% revenue growth to £177m, headcount flatlined on 22,000 bikes. Japanese domestic details were somewhat embarrassing too. Revenue rose by a modest 6% to £111m. But Suzuki suffered a 19.4% volume decline to 34,000 — mostly small scooters — on home turf.

For the full fiscal year concluding on 31 March 2023, Suzuki forecasts annual production will have risen by 4.3% to 1.861 million bikes. Global sales volume should be 13% up, reaching 1.852 million.

Yen-sterling currency translation at forex rates applicable on 9 February.