The little giant: Suzuki dethrones Honda

Suzuki has overtaken Honda to become Japan’s second-largest automaker by global sales volume for the first time in its history, driven largely by booming demand in India and record financial results despite a difficult period for the brand in Australia.

The automotive pecking order in Japan has shifted dramatically, with Suzuki leapfrogging Honda to become the country’s second-largest car-maker behind Toyota.

Buried within Suzuki’s latest earnings report was confirmation the brand sold 3.55 million vehicles globally during the Japanese financial year ending March 31, 2026 – up seven per cent on the prior year.

That figure comfortably eclipsed Honda’s 3.37 million global deliveries over the same period and marks the first time in Suzuki’s seven-decade automotive history it has claimed the number-two spot.

Ironically, Suzuki’s global success comes during one of its toughest periods in Australia.

Local deliveries plunged 27.7 per cent during 2025 from 21,278 sales to just 15,387 vehicles after a stop-sale affecting the three-door Jimny and a recall campaign involving the newly launched Fronx SUV hampered momentum late in the year.

The downturn has continued into 2026, with Suzuki Australia’s year-to-date sales through April trailing last year’s pace by just over 23 per cent.

Honda, meanwhile, narrowly outsold Suzuki in Australia during 2025 despite its own relatively modest volume, recording 15,383 sales after posting growth of just over nine per cent.

Globally, however, the picture looked very different.

Honda endured one of its most difficult financial years in recent memory, posting its first annual net loss since listing on the Tokyo Stock Exchange in 1957.

It has also pivoted away from EVs and towards PHEVs following its earnings call earlier this week, also confirming a new SUV that could wear the Accord badge.

The company has struggled against slowing electric vehicle demand in China and tariff-related pressures in the United States – two markets where Suzuki has comparatively limited exposure.

Suzuki meanwhile is firing on all cylinders, especially in emerging markets like India.

Suzuki currently commands roughly 40 per cent of the Indian automotive market and is preparing for significant future expansion, with production capacity expected to rise by nearly 50 per cent to four million vehicles annually by 2030.

Around 500,000 units of additional annual capacity are due to come online during 2026 alone.

“We’re not doing things to become number two – our mission is to build and sell cars that people will embrace,” Suzuki president Toshihiro Suzuki said during the company’s earnings presentation.

Suzuki’s financial performance was equally strong, with consolidated net profit climbing six per cent to a record ¥439.2 billion ($A4.6 billion), while revenue surged eight per cent to ¥6.29 trillion ($A66.2 billion).

There are, however, emerging challenges.

Suzuki warned ongoing instability in the Middle East is expected to place additional pressure on supply-chain costs and margins, while competition in India is intensifying as rival Japanese brands – including Honda – attempt to strengthen their foothold in the rapidly growing market.

Toyota, meanwhile, remains comfortably clear at the top of the global leaderboard.

The Japanese giant recorded a new all-time sales record of 11.28 million vehicles across its Toyota, Lexus, Daihatsu and Century brands.

Locally, Toyota Australia recorded a 22.7 per cent sales decline across the opening four months of 2026, although its dominance Down Under remains effectively unchallenged.

Suzuki’s rise to second place globally highlights the growing importance of India in the automotive landscape and underlines how vulnerable established giants can be to changing market conditions in China and the United States.

While Suzuki’s Australian business remains under pressure, the company’s global momentum – and aggressive expansion plans in India – suggest the brand is positioning itself for even greater influence in the years ahead.

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