SEOUL, May 19 (Korea Bizwire) – Following Nissan, Suzuki is also facing allegations regarding emissions manipulation. Suzuki is the market leader in India, followed by Hyundai, and experts say the controversy could provide Hyundai with momentum to catch up to its competitor on Indian soil.
According to the experts, India is one of the new major emerging markets for competition between Hyundai and Suzuki.
Suzuki has its own Indian asset, Maruti Suzuki, a joint venture between Suzuki and local manufacturer Maruti. The company sold 1.28 million units in 2015, and claimed 46.7 percent of the market.
Hyundai opened its Indian factory in 1998, manufacturing 10 models and competing in all vehicle classes. The company set its record in 2015 with 476,000 units sold, but its 17.3 percent market share still lags significantly behind its competitor.
Certain experts observe that if the current allegations prove to be true, Maruti Suzuki might also take a sizable hit, providing Hyundai with some momentum to expand its Indian market share.
But others argue that as a major brand in the automobile industry, Suzuki’s affiliate in India won’t be affected much.
“Maruti Suzuki is a ‘national brand’ that claims almost half the market. It’s too early to anticipate the impact when nothing has been proven to be true,” said an industry official.
So far, Suzuki is accused of not following the Japanese government’s guidelines on its vehicles’ emissions tests, but have denied cheating or manipulating the results.
By Kevin Lee (email@example.com)