Suzuki Looks to New SX4 for Russian Sales Bump

VIENNA – Suzuki is looking to the new-generation Suzuki SX4 cross/utility vehicle to increase its sales in Russia.

“The new SX4 will be definitely a top model,” Koichi Takakura, general director-Suzuki Motor Rus, the auto maker’s Russian import subsidiary, tells WardsAuto. “We have an ambitious goal of selling 2,000 units of this model every month (after 2015).”

Suzuki unveiled the SX4 at this year’s Geneva auto show. The CUV is a production model based on the S-Cross concept showcased at the 2012 Paris auto show.

Production will start later this year at the Magyar Suzuki plant in Esztergom, Hungary. After its European launch, the SX4 will be exported elsewhere, making the Magyar Suzuki plant one of the most important manufacturing bases for Suzuki’s global strategy.

 “We will have the vehicles in our dealerships in December at the latest,” Takakura says. Sales of the current SX4 will continue.

Last year, Suzuki sold 32,684 vehicles in Russia, down 7.9% from 2011. It was one of the few brands whose Russian volume declined in 2012.

“Last year, we did not have any totally new models,” Takakura says. “We plan to a level of around 35,000 units this year.

“From next year, every year a new model will be launched in the Russian market, so we have a goal to go for 50,000 units at least,” he says when asked about sales targets for the next four to five years.

Suzuki has 77 dealer outlets in Russia, and it plans to finish the year with about 80. The dealer network covers 88% of the country’s territory.

“Due to our unique Suzuki model lineup, the Suzuki brand is quite strong in the regions in Russia,” Takakura says. “Our strategy is to offer Suzuki in every part of the country, but I do think that the 88% of Russia we currently cover is good.”

Suzuki’s activity in the Russian market focuses on CUVs and SUVs.

“Maybe in the future some B-segment sedan could be preferable, because this segment has also been increasing in Russia,” Takakura says. “And I am sure Suzuki is always ready to meet the needs of the Russian market in the mid-to-long future.”

Vehicles sold by Suzuki in Russia are sourced from Japan and Hungary. The countries’ shares of production for the Russian market were roughly equal until 2012, when output from Hungary outpaced Japan’s for the first time.

“I think the Hungarian share will be increasing in the future,” Takakura says.

Suzuki has abandoned plans to build a plant in St. Petersburg; Takakura does not see the need for production or assembly of Suzuki vehicles in Russia in the near term.

“For us, this project is frozen as of now, and as long as the Hungarian plant continues to offer stable, high-quality production, I think this can justify our needs for the Russian market.”