Why Did Changan Suzuki Stop Selling?
2 Answers
First, the slow model updates are the primary reason. The main reason why Suzuki's models are well-known to most consumers is that each model has been sold for too long. For example, models like the Alto, Swift, and SX4 sometimes only needed a change in body color to be called an annual facelift. In recent years, as domestic consumers' demands for vehicles have increased, Suzuki's strategy has become ineffective. Although models like the Vitara and Ignis were launched later and received good market feedback, the pace of new model releases was still too slow compared to mainstream domestic car brands. Secondly, Suzuki was too "stubborn" in terms of space and configuration. Domestic consumers have very high demands for space and features. Many models have extended their interior space to meet these demands, gaining consumer recognition and becoming mainstream bestsellers. In contrast, Suzuki's models, whether the early compact cars or the later family-oriented compact models, could not compete with mainstream models in terms of space. Moreover, the configurations of Suzuki-branded vehicles are average compared to their peers. It is hard to find a Suzuki model that satisfies consumers in terms of features. Additionally, the interior materials and quality are at a disadvantage compared to mainstream models in the same price range. Finally, inflexible market strategies were evident with the later launch of the Vitara. Although the Vitara had strong product appeal and excellent design, there were no cash discounts at the dealership level. Even before the exit from the market, discounts were rare. Such pricing strategies ultimately led to consumer abandonment. Suzuki's exit is also related to the rapid development of the automotive market. Consumers' increasing demand for models above the compact level and the overall decline in vehicle prices left Suzuki models with no competitive edge in the market.
I spent over a decade in the automotive industry and witnessed the withdrawal of Changan Suzuki firsthand. Essentially, it was Suzuki's strategic transformation that led to the dissolution of the joint venture—in 2018, Suzuki directly withdrew its investment and sold its entire 50% stake to Changan. Back then, Suzuki realized that Chinese car buyers' preferences had shifted: everyone was rushing to buy spacious SUVs, but Suzuki only excelled at making compact cars like the Swift and Vitara. While the prices were affordable, the low profit margins and inability to break into the mainstream market made them calculate that it wasn't worth the effort, so they pulled out entirely. Now, Changan is using the technology to produce cars like the Alivio on its own, but the lack of new vehicle sources at 4S dealerships is due to the complete expiration of the licensing agreement—even the classic Alto has become a discontinued model.
