Suzuki Motor (TYO:7269) is on track to overtake Honda Motor (TYO:7267) as Japan's second-largest automaker by global vehicle sales this fiscal year, driven by strong growth in India, Nikkei reported Friday.

Suzuki forecasts automobile sales of 3.6 million units for the year ending March 2027, up 7%, compared with Honda's projection of 3.3 million units, according to the report.

India is fueling Suzuki's expansion and is expected to account for about 60% of its global sales volume. The company has also avoided pressure from the U.S. tariff market and intensifying electric-vehicle competition in China, where several Japanese rivals are struggling, the report said.

Suzuki posted record fiscal 2025 net profit of 439.2 billion yen on revenue of 6.29 trillion yen, though it expects profit to fall 13% this fiscal year due to higher raw material costs and Middle East-related risks, according to the report.

Competition in India is intensifying as Honda and Toyota Motor (TYO:7203) expand in the market. Honda plans to launch new compact and midsize models from 2028, while Toyota aims to raise India production to 1 million units in the 2030s, the report said.

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