Suzuki Motor Corporation

Fleet emissions lock-in

Suzuki has demonstrated a steady decline in its fleet emissions, despite the lack of a reduction target. It relies exclusively on conventional hybrid technology and improved fuel efficiency for its internal combustion engines to decrease its overall fleet emissions, given that it does not sell any plug-in hybrid or fuel cell electric vehicles. However, Suzuki’s locked-in fleet emissions, those of vehicles sold recently, are still significantly high for the carbon budget allocated under the low-carbon pathway. The company has also not revealed any plans to transition away from conventional hybrids towards fully electric vehicles.

The proportion of Suzuki’s research and development spending on climate mitigation efforts, as compared to its total capital expenditure, is well aligned with the level required under the low-carbon pathway. However, the company’s investment decisions do not demonstrate a commitment to alternative technologies beyond conventional hybrids and internal combustion engine vehicles. Suzuki should invest more in low-carbon technology to better prepare itself for the rapid shift that will occur in the transition towards a low-carbon economy.

Low-carbon vehicle share

Though its fleet emissions are relatively low, Suzuki will not be able to further improve its internal combustion engine efficiency without upgrading the drivetrain technology. To become aligned with the low-carbon pathway, the company should sell more vehicles that operate without requiring fuel for at least more than half of their use. This would mean, for example, adding plug-in hybrids and/or fuel cell electric vehicles to production.

While Suzuki has not established any long-term emissions reduction targets, it performed well against its short-term manufacturing emissions reduction target. Suzuki could use low-carbon scenario analysis along with stress testing analysis to inform its short, medium and long-term milestones to be consistent with the low-carbon pathway. This would also help the company indicate its level of commitment to decarbonisation and advance its efforts across all levels within the company.

Suzuki has not established any fleet emissions or manufacturing emissions reduction targets in the medium or long term. However, the company has a short-term target to cut 10 percent of its manufacturing emissions by 2020, as compared to its 2010 levels. Furthermore, Suzuki has not revealed any plans to move away from selling higher-emitting internal combustion engine vehicles and has not shared information regarding its intentions to move towards new passenger mobility solutions.

Suzuki plans to focus on developing conventional hybrid technology and improving the efficiency of its internal combustion engines to reduce its fleet emissions.

Suzuki plans to increase its sales in the Indian market. These vehicles’ internal combustion engines are marginally more efficient, reducing Suzuki’s overall fleet emissions. Suzuki has also initiated a joint venture to produce batteries for future plug-in hybrid vehicles.

Suzuki has recently improved the efficiency of its internal combustion engines and has started to reduce its manufacturing emissions, though the company is still not aligned with the automotive industry’s low-carbon pathway.

Suzuki does not show any low-carbon transition planning to help decarbonise the automotive industry. Furthermore, the company does not use scenario analysis or low carbon stress testing tools to appropriately space its emissions targets over the long term. It also does not plan to increase its sales of low-carbon vehicles.