Company Reports - Suzuki Auto SA
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Suzuki Auto SA
A True ‘Way of Life' Brand
Written by Ian Armitage & Produced by Nick Norris
Japanese car manufacturer Suzuki returned to South Africa in a R106 million investment in 2008. Suzuki was previously distributed in the country through General Motors (then still Delta Motor Corporation), but this arrangement ended in 2004.
“The equity in Suzuki Auto South Africa is jointly held between Suzuki Motor Corporation (85 percent) and Suzuki South Africa (15 percent), the importer and distributor of Suzuki motorcycles, quad bikes and marine outboard motors,” Francois van Eeden, National Marketing Manager, says. “Extensive market research was carried out prior to the Suzuki automotive brand re-entering the SA market in June 2008 and it showed that Suzuki was a respected brand among the South African motoring public so it was a calculated risk returning here,” he adds.
Indeed, Suzuki Motor Corporation (SMC) of Japan conducted research in the South African market for a number of years before deciding that South Africa was a growth opportunity.
“The decision to establish a subsidiary company ensures customers receive the best possible treatment from both a vehicle purchase and aftersales perspective,” van Eeden explains.
The decision paid off. Suzuki has enjoyed tremendous success with the brand in the South African market. Last year, despite the downturn, it achieved a market share of 1.67 percent, representing unit sales of 3,761 units.
“Bearing in mind that we have just come out of an international recession, the value for money proposition has become very important to consumers,” van Eeden says. “We offer very good value for money in terms of our vehicles. The quality on the Suzuki vehicles is renowned and Suzuki has, in a very short time, developed a very good reputation for a good after sales service and good parts availability.”
Growth is now returning to the market. And this year, van Eeden is hoping for better. “The National Association of Automobile Manufacturers of South Africa (NAAMSA) is reporting a revival in new passenger and light commercial vehicle sales in South Africa and the industry has moved into growth mode,” he says. “We are forecasting a growth in volume for the brand of just under 40 percent in 2010, which should give us a market share in the region of 1.85 percent for sales in the region of over 5,000 units,” he adds. “I think it is going better than initially expected.
“We have made huge progress in positioning the brand as a true ‘way of life’ brand.”
STRONG NETWORK, EXCELLENT SERVICE
With a head office at Linbro Park, in Sandton, Suzuki has built up a strong network in Southern Africa. It has 23 dealerships in all major centres, such as Johannesburg, Pretoria, Cape Town and Durban, and by year-end, it is expected that at least 27 dealerships will have opened their doors.
“We recently opened the 23rd dealer in Namibia and if all goes to plan we will expand that to 27 dealers by year-end and obviously branching out to places like Botswana, where there is a huge demand for our vehicles, and some of the outlying areas of South Africa like the Northern Cape Province, the Southern Cape Province and the KwaZulu-Natal midlands area,” van Eeden says.
The first models to be introduced to SA were the Swift and SX4 model ranges, followed by the Jimny and Grand Vitara, and lastly the Alto, which was introduced in the third quarter of 2009.
“Swift and SX4 are still the top sellers,” van Eeden admits. “In February this year, and in line with international developments, we had a slight revision of the SX4 range and we introduced the four wheel drive derivative, which has proved very popular. SX4 is selling very well. We will be retailing around 1,500 of those units into SA this year. The Swift is doing well. I’d say about 1,300 units.
“We have seen of late a lot of interest in the Jimny,” he adds. “That has a good reputation in Europe and the U.S. and it is fast becoming an iconic model is the South African market. People really like this little car. And interestingly enough we see a huge percentage of lady drivers in these.”
NO PLANS TO MANUFACTURE
The company employs 27 people at its head office, but is of course supported by SMC and its dealer network. “There isn’t much need for a huge team,” van Eeden says, before explaining that all Suzuki vehicles are imported through the port of Durban.
There are no plans to establish manufacturing capacity in South Africa, he notes. “I’m not saying it won’t ever be considered. What I am saying is that it is a complicated decision, and in the short- to medium-term I can’t see that happening,” he says.
Suzuki vehicles destined for the South African market are currently produced at the Kosai and Iwata plants in Japan, as well as its plants in Hungary and India.
“In the main our vehicles come from our plants in Japan, but there are two vehicles that come from different plants – the Suzuki Alto, which comes from India, and the Swift 3 door sport hatch, which comes from Hungary,” van Eeden says.
SMC has more than 30 major overseas assembly plants outside of Japan, as well as many overseas sales subsidiaries and affiliates. “The Suzuki range of vehicles has established a reputation for high quality and reliability, and they are really fun to drive too,” says Van Eeden. “Suzuki is really a great brand and we are enjoying the success.
“If everything goes to plan we will hit a 1.85 percent market share by year-end,” he adds. “We have twice this year exceeded the 2 percent level - we recorded 2.33 percent in February and we repeated that performance in March. It is quite possible to achieve 2 percent, but I would like to see that on a sustained level and certainly the aim next year would be to achieve those levels.”
With the Kizashi and other new releases expected in the New Year, these are exciting times for Suzuki South Africa. “Expansion of the model line-up for South Africa will add to the impetus that we have already created, and will serve as re-assurance to consumers and brand loyalists that Suzuki is really here for the long run,” van Eeden concludes.
“The equity in Suzuki Auto South Africa is jointly held between Suzuki Motor Corporation (85 percent) and Suzuki South Africa (15 percent), the importer and distributor of Suzuki motorcycles, quad bikes and marine outboard motors,” Francois van Eeden, National Marketing Manager, says. “Extensive market research was carried out prior to the Suzuki automotive brand re-entering the SA market in June 2008 and it showed that Suzuki was a respected brand among the South African motoring public so it was a calculated risk returning here,” he adds.
Indeed, Suzuki Motor Corporation (SMC) of Japan conducted research in the South African market for a number of years before deciding that South Africa was a growth opportunity.
“The decision to establish a subsidiary company ensures customers receive the best possible treatment from both a vehicle purchase and aftersales perspective,” van Eeden explains.
The decision paid off. Suzuki has enjoyed tremendous success with the brand in the South African market. Last year, despite the downturn, it achieved a market share of 1.67 percent, representing unit sales of 3,761 units.
“Bearing in mind that we have just come out of an international recession, the value for money proposition has become very important to consumers,” van Eeden says. “We offer very good value for money in terms of our vehicles. The quality on the Suzuki vehicles is renowned and Suzuki has, in a very short time, developed a very good reputation for a good after sales service and good parts availability.”
Growth is now returning to the market. And this year, van Eeden is hoping for better. “The National Association of Automobile Manufacturers of South Africa (NAAMSA) is reporting a revival in new passenger and light commercial vehicle sales in South Africa and the industry has moved into growth mode,” he says. “We are forecasting a growth in volume for the brand of just under 40 percent in 2010, which should give us a market share in the region of 1.85 percent for sales in the region of over 5,000 units,” he adds. “I think it is going better than initially expected.
“We have made huge progress in positioning the brand as a true ‘way of life’ brand.”
STRONG NETWORK, EXCELLENT SERVICE
With a head office at Linbro Park, in Sandton, Suzuki has built up a strong network in Southern Africa. It has 23 dealerships in all major centres, such as Johannesburg, Pretoria, Cape Town and Durban, and by year-end, it is expected that at least 27 dealerships will have opened their doors.
“We recently opened the 23rd dealer in Namibia and if all goes to plan we will expand that to 27 dealers by year-end and obviously branching out to places like Botswana, where there is a huge demand for our vehicles, and some of the outlying areas of South Africa like the Northern Cape Province, the Southern Cape Province and the KwaZulu-Natal midlands area,” van Eeden says.
The first models to be introduced to SA were the Swift and SX4 model ranges, followed by the Jimny and Grand Vitara, and lastly the Alto, which was introduced in the third quarter of 2009.
“Swift and SX4 are still the top sellers,” van Eeden admits. “In February this year, and in line with international developments, we had a slight revision of the SX4 range and we introduced the four wheel drive derivative, which has proved very popular. SX4 is selling very well. We will be retailing around 1,500 of those units into SA this year. The Swift is doing well. I’d say about 1,300 units.
“We have seen of late a lot of interest in the Jimny,” he adds. “That has a good reputation in Europe and the U.S. and it is fast becoming an iconic model is the South African market. People really like this little car. And interestingly enough we see a huge percentage of lady drivers in these.”
NO PLANS TO MANUFACTURE
The company employs 27 people at its head office, but is of course supported by SMC and its dealer network. “There isn’t much need for a huge team,” van Eeden says, before explaining that all Suzuki vehicles are imported through the port of Durban.
There are no plans to establish manufacturing capacity in South Africa, he notes. “I’m not saying it won’t ever be considered. What I am saying is that it is a complicated decision, and in the short- to medium-term I can’t see that happening,” he says.
Suzuki vehicles destined for the South African market are currently produced at the Kosai and Iwata plants in Japan, as well as its plants in Hungary and India.
“In the main our vehicles come from our plants in Japan, but there are two vehicles that come from different plants – the Suzuki Alto, which comes from India, and the Swift 3 door sport hatch, which comes from Hungary,” van Eeden says.
SMC has more than 30 major overseas assembly plants outside of Japan, as well as many overseas sales subsidiaries and affiliates. “The Suzuki range of vehicles has established a reputation for high quality and reliability, and they are really fun to drive too,” says Van Eeden. “Suzuki is really a great brand and we are enjoying the success.
“If everything goes to plan we will hit a 1.85 percent market share by year-end,” he adds. “We have twice this year exceeded the 2 percent level - we recorded 2.33 percent in February and we repeated that performance in March. It is quite possible to achieve 2 percent, but I would like to see that on a sustained level and certainly the aim next year would be to achieve those levels.”
With the Kizashi and other new releases expected in the New Year, these are exciting times for Suzuki South Africa. “Expansion of the model line-up for South Africa will add to the impetus that we have already created, and will serve as re-assurance to consumers and brand loyalists that Suzuki is really here for the long run,” van Eeden concludes.
