Suzuki Exits China Ventures

Small-car specialist Suzuki Motor Corp. is ending its joint venture with Chongqing Changan Automobile Co. after years of declining sales in China.

The company will transfer its 50% stake in the venture to Changan, which will continue to build Suzuki-brand cars under a licensing scheme.

The two companies formed the joint venture 25 years ago when they introduced the Alto minicar. The move follows the June dissolution of Suzuki’s 23-year-old venture with Jiangxi Changhe Automobile Co.

China’s car market has shifted sharply upscale since the two partnerships began, Bloomberg News notes. The news service cites data from the China Passenger Car Assn. showing that the country’s demand for tiny economy cars has plummeted to 7% from 35% in 2003.

Last year, sales by Suzuki Changan dropped 27% in spite of the introduction of two crossover models, the Vitara and S-Cross, according to Bloomberg.