The Nikkei reports that Suzuki Motor Corp. is deferring plans to come up with a larger automobile for the global market and open overseas factories.
Suzuki had aimed to develop a car that would sport an engine of up to 3.6 liters, the automaker’s largest to date, to attract international customers looking to upgrade from smaller vehicles. Named the Kizashi, the auto was to debut in 2010.
But in India, where Suzuki has a 50% market share, November car sales plummeted 27% on the year. With a recovery not expected for several years, the carmaker has decided to freeze plans for the new vehicle. If demand for larger vehicles in India and other markets starts to expand, however, Suzuki intends to revive this program.
Suzuki also reportedly will postpone plans to open a new plant in Thailand in 2009 and one in Russia in 2010.
Toyota also reportedly is freezing plans for new factories in Thailand and Russia. The Thai diesel engine plant would have raised its annual diesel engine output capacity to 350,000 units in 2010. In Russia, Toyota began assembly at a 50,000 unit plant in St. Petersburg in 2007. Plans for a second plant at the location or now on hold as production at the existing factory fell short of its forecast.