Suzuki Motor heir takes over as the new president

Suzuki Motor Corporation's 85-year-old CEO Osamu Suzuki named his eldest son Toshihiro Suzuki as the new president of Japan's fourth-biggest car maker, easing investor concerns over the company's succession plan and boosting its shares.

Toshihiro took over the role from his father as president and chief operating officer on Tuesday. Osamu Suzuki remains the CEO and chairman of the company, reported the Economic Times.

The company also announced its new mid-term plan, where it gave a heavy weight to its Indian subsidiary in its future growth prospects.

Suzuki said it will try to achieve 3.4 million vehicles sales by the end of the decade aiming to grow at a CAGR of 3% by 2020. Asia is expected to contribute over 64% (2.2 million) of its global volumes by then and India will contribute a lion's share of 58% or 2 million annual sales volumes by then.

India contributed around 43% of Suzuki's global sales and 30% of its consolidated profits in FY-15.

The Japanese automaker said it expects the passenger vehicle market in India to grow at a compounded rate of 11% for the next five years to 5 million units and become the third largest passenger vehicle market globally by 2020 and Suzuki expects Indian base to retain its high 45% market share, despite stiff competition.

K Ayukawa, MD & CEO, Maruti Suzuki India Limited told ET: "The SMC medium term plan puts high focus on India, which is very positive. Mr T Suzuki has been a board member of MSIL since October 2013 and has a very good understanding of our business. Overall, SMC's commitment to India remains unchanged".

The local Indian subsidiary will not only act as a key production base, but its Japanese parent wants the India operations to globalise the brand further by exporting to newer markets.

Suzuki Motor Corporation said it will launch 20 new products in the coming five years which may also include full model changes of existing cars and it wants to make India a long term development base by co-developing more with Indian engineers.

(Image: Reuters)