Suzuki Motor Corp. agreed to transfer the 50% equity it holds in joint venture Chongqing Changan Suzuki Automobile Co. Ltd. to state-owned JV partner Chongqing Changan Automobile Co. Ltd., confirming previous reports, and thereby exiting its operations from the country.
Suzuki previously ended its joint venture with China's Jiangxi Changhe Automobile Co. Ltd.
Under the agreement, Changan Suzuki will become a wholly owned subsidiary of Changan Automobile, the company said Sept. 4. The current president, who was sent from the Japanese automaker, is expected to resign.
Suzuki added that it will continue to license the production and sale of its models to Changan Suzuki after the transfer, which is expected to complete once legal proceedings in China are done.
Suzuki chairman Osamu Suzuki said the move is partly a result of the Chinese market's shift to larger vehicles.
The Shizuoka-based car manufacturer has plans of establishing a new manufacturing plant in Gujarat, India, following its reported exits in the U.S. and China, according to a Sept. 3 Mint report.