Business Suzuki on track to overtake Honda as Japan’s No. 2 automaker

Suzuki Motor is on track to become Japan's second-largest automaker by sales volume for the first time, while Honda Motor appears set to fall to third place. Suzuki said on Thursday it expects to sell 3.55 million vehicles in the fiscal year ending March 2027, up 7% from the previous year. Honda forecast sales of 3.39 million vehicles over the same period. Much of Suzuki's growth is being driven by India, which is expected to account for around 60% of the company's global sales volume. According to the Society of Indian Automobile Manufacturers, new vehicle sales in India rose 9% in fiscal 2025 to a record 5.72 million units.

Unlike other Japanese automakers, Suzuki does not operate in the U.S., a market impacted by President Donald Trump's tariffs, or in China, where electric vehicles are becoming widespread and competition with local manufacturers is intense.

Though Suzuki remains India's leader in passenger car sales, its market share -- which once surpassed 60% -- slipped below 40% in fiscal 2025. To defend its stronghold, the automaker plans to increase annual production capacity in India by more than 50% to 4 million units by fiscal 2030. Suzuki will expand capacity by 500,000 units in the first half of this financial year, lifting the total to 2.9 million. The automaker is also developing India as an export hub, since labour costs are relatively low there. Exports for fiscal 2025 rose 35% to 448,000 units.

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