Shanghai (ZXZC)- Changan Suzuki clarified that its two parent companies, Changan Auto and Suzuki, have been under a positive discussion in terms of the joint venture's development.

Recently, there was a rumor saying that a JV brand will retreat from China's market. Many insiders surmised that Changan Suzuki, who suffered continuous sales decreases in the past several years, may be the one. The Sino-Japanese automaker released the statement to deny the rumor.

An analyst deemed that ChanganSuzuki will not withdraw businesses from China's market this year even if the retreat may happen someday in future.  Suzuki signed a 30-year cooperation agreement with Changan Auto since it stepped into China in 1993. Thus, it's unlikely that both companies will terminate the cooperation before the agreement expires, said the analyst.

Besides, even though the Japanese automaker has been suffering sales losses in China, it still has certain market shares in this country. In addition, Changan Suzuki also brought products to Auto China 2018 that was concluded a few days ago.

Changan Suzuki has been experiencing sales downturn after 2011. In 2016, its annual deliveries reached only 115,000 units, nearly halved versus the sales of 220,000 units in 2011. Furthermore, the annual deliveries kept declining to 86,000 units last year, slumping 25% from the previous year as well. In the first quarter this year, the automaker delivered a total of 13,000 vehicles with a sharp year-on-year drop of 55.7%. Particularly, its monthly sales nosedived 67.3% from a year ago with only 4,843 vehicles delivered in March.