Suzuki

Suzuki’s sales of low-carbon vehicles remain negligible at just 0.1% of sales in 2020. The new Suzuki Mid-Term Management Plan, presented in February 2020 and covering the period to March 2026, refers to electrification but without providing details on changes to current production lines. Mini and compact electric vehicles will be co-developed with Toyota. At the same time, Suzuki will expand its hybrid offering. The focus is still on internal combustion engine improvements. The company has not set targets to increase low-carbon vehicles sales. These need to reach a 64.5% share of sales by 2030 to be aligned with the 1.5 °C pathway.

The company is not at all transparent on its plans for new low-carbon business models. It shares no information on activities to reduce barriers to market penetration of low-carbon vehicles, such as developing charging infrastructure. Similarly, no information was found to indicate that the company is transitioning away from a business model relying on vehicle sales to one which provides mobility-as-a-service to contribute to low-carbon optimisation of personal mobility. The company has reported it intends to make electric scooters, which would facilitate modal shift to alternative personal low-carbon vehicles, but without providing details.

Suzuki does require its suppliers to implement an Environmental Management System and it collects emissions data from suppliers representing 24% of the procurement spend in Japan but it does not share details on how it uses this data to drive emissions reductions in its supply chain. It does not share information on engagements with its supply chain in India. There is opportunity for Suzuki to encourage suppliers to set science-based targets, to develop joint low-carbon research and development (R&D) projects and to make purchase commitments for low-carbon products like green steel.

Suzuki plans to reduce its manufacturing emissions intensity by 45% by 2030 and by 80% by 2050 from the 2016 value. It plans to reduce in-use emissions intensity by 40% by 2030 and by 90% by 2050 from the 2010 value.

Suzuki’s slogan of “Small cars for a big future” informs its plan to increase the share of more compact internal combustion engine vehicles with improved hybrid technologies in its sales mix. It plans to sell electric vehicles as well as compressed natural gas vehicles in India, its largest market.

The share of low-carbon vehicles in Suzuki’s sales is negligible (0.1% in 2020) and there are no public targets to increase this. Suzuki is not at all transparent on how much of its 2020 capital expenditure (USD 2.26 million) is for low-carbon technology research and development.

The company decreased manufacturing emissions per vehicle produced by nearly 7% between 2015 and 2020. It has not reduced the in-use emissions intensity of its sold vehicles. However, this value remains relatively low, at 69 gCO2/p.km in 2020.

To demonstrate consistency, Suzuki needs to set more ambitious and more frequent emissions reduction targets. Its sales mix has been shifting towards, generally heavier, sports utility and multi-purpose vehicles. Internal combustion engine fuel economy improvements alone will not decarbonise the company’s business fast enough.