Suzuki, after celebrating its 100th anniversary in March 2020, is changing course this year and will focus more on electrification.

The 91-year-old chairman Osamu Suzuki (who joined Suzuki in 1958) is retiring, leaving the helm to son Toshihiro Suzuki, who is already president and CEO. The company just announced deep management changes and a new Mid-Term Management Plan (for the period: April 2021 to March 2026).

The plan is to increase R&D investments to 1.0 trillion yen over the next 5 years (200 billion yen/year), which is $9.45 billion. Most of the amount, according to Reuters, will fall on electrification

Because of the high cost of electrification technologies and the relatively small size of the company (compared to the largest automotive groups), Suzuki will deepen its alliance with Toyota, "by cooperating in electrified vehicles.". Suzuki might be considered as one Toyota's satellites, similar to Mazda and Subaru.

Let's recall that Suzuki already introduced a plug-in hybrid Suzuki Across PHEV, which is in fact a rebadged Toyota RAV4 Prime.

According to the official press release, Suzuki targets lower operating income (5.5%) over the next five years, because the R&D investments will be aggressive:

"The operating income target is set at 5.5%, below the previous target of 7%, due to aggressive investment in research and development, such as electrification, which amounts to ¥1 trillion over 5 years."

In the case of Suzuki, one of the main markets for electrification might be India:

"In India, Suzuki will take the initiative in promoting electrification required by society in response to environmental issues in India, and maintain market share of more than 50% in passenger car segment."

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