TOKYO - Japanese carmaker Suzuki Motor Corp. is tapping into markets in Africa, aiming to increase sales on the continent by roughly 20 percent from the previous business year through March to 150,000 units in fiscal 2030.
The automaker sees Africa as the "next India," its key market, where low-priced vehicles capable of withstanding rough roads are popular. Population growth and economic expansion are also expected to broaden its customer base and help boost exports.
The population in Africa exceeds 1.5 billion, surpassing that of India, the world's most populous country. The region is seen as a huge market, with the population projected to grow to 2.5 billion by 2050.
The new vehicle market in Africa currently totals about 1.4 million units annually. Suzuki sells around 127,000 vehicles in the region, most of which are produced in geographically close India, giving the company a market share of 9 percent.
With the automaker focusing on the sub-Saharan region, sales of the fuel-efficient Dzire compact are growing in countries such as Ivory Coast, where demand for ride-sharing services is strong due to limited public transportation options.
In South Africa, the Fronx sport utility vehicle, known for its high drive performance, is popular, while countries including Nigeria and Ethiopia, which are expected to see rapid population and economic growths, are viewed as promising markets.
Suzuki tapped into the Indian market ahead of its rivals in the 1980s and became the country's leading automaker.
With its strength in persistently cultivating emerging markets, the automaker became a sponsor of a popular football competition in Africa last year to raise its name recognition. It also plans to expand its dealers and maintenance sites.
However, Chinese automakers are also stepping up their presence in the region. Competition is expected to intensify after it was revealed in January that Chery Automobile Co. plans to acquire a South African plant owned by Nissan Motor Co.
Yusuke Kato, Suzuki's managing officer involved in its African business, said the company "aims to foster trust and build long-term relationships with customers."
