State-owned auto manufacturer Changan Automobile has fully acquired  joint venture Changan Suzuki from the Japanese parent company for one yuan (US$0.15), marking Suzuki’s exit from the Chinese market, Yicai.com reported.

Founded in 1993, Suzuki and Suzuki China held 40% and 10% of the shares of Changan Suzuki, respectively. After the acquisition, Changan Automobile will become the 100% controlling shareholder.

Amid fierce competition in the auto market, Changan Suzuki failed to make strategic adjustments in time and its small car strategy did not keep pace with market development. From 2011 onwards, the company’s sales began to decline, year by year.

In the first half of this year, it sold only 24,900 vehicles, which is not as good as the monthly sales of other car companies.

Previously, there were rumours that Suzuki would withdraw from the Chinese market, though the company had repeatedly dismissed them.

The Japanese car maker had two joint ventures in China, namely Changhe Suzuki and Changan Suzuki. In June of this year, Suzuki officially withdrew from Changhe Suzuki, which it had held for 23 years.