After 40-year stint, Osamu Suzuki to step down as chairman

NEW DELHI: Suzuki Motor Corp today announced that its chairman Osamu Suzuki, who has led the Japanese company for more than 40 years, will retire in June.

In a disclosure, the company said the 91-year-old will retire after a shareholders' meeting in June and become an adviser.

Toshihiro Suzuki will replace Osamu, and become the chairman in June. He has been president of the company since 2015.

Even as it announced a change at the helm, Suzuki Motor said its net sales in 2020-21 are seen at around 3 trln yen (2.1 trln rupees) due to global chip shortage, after COVID-19 hit the company's sales earlier in the year.

The company had set the target for 2019-20 (Apr-Mar) at 3.7 trln yen, which it had missed; it is likely to miss the target for 2020-21 as well.

The parent of Maruti Suzuki India Ltd is likely to miss the target set for net sales and operating profit ratio in 2020-21 due to the slowdown in the Indian market, final inspection issue and COVID-19.

As part of the company's midterm management plan for five years, from 2021-22 (Apr-Mar) to 2025-26, it aims to increase net sales to 4.8 trln yen (3.3 trln rupees) by 2025-26 by selling 3.7 mln units of four wheelers and 2 mln units of motorcycles across the world. Suzuki Motor Corp aims to maintain the market share of over 50% in the passenger car segment in India and market share of 30% in the minicar segment in Japan.

The company has set a target to increase its compact car sales by 50% from the sales in 2020-21. It also aims to promote electrification of vehicles in India, in response to the environmental issues and the government's initiative. The company will deepen its alliance with Toyota Motor Corp for electrified vehicles, supplementing product and components, and cooperating in the African market.

For the motorcycle business, the company has set a sales target of 2 mln units in 2025-26 and an operating margin target of 5% and for its marine business, it aims to achieve net sales of 100 bln yen. Suzuki Motor Corp will also look to maintain its dividend payout ratio at 30% till 2025-26.

It aims to invest 1 trln yen (700 bln rupees) in research and development and 1.2 trln yen (820 bln rupees) in capital in the next five years.

Suzuki Motor Corp will develop hybrid engines for its mini, compact and commercial vehicles, make plug-in hybrids, expand its range of vehicles, and develop mini electric vehicles and compact electric vehicle through alliance with Toyota.