The plant in Esztergom (49 km northwest of Budapest by road) produced more than 163,338 autos, with 92.9% exported to 123 countries. This marked a 24.3% increase in production volume compared to 2022 and a 33.9% rise in total sales revenue, reaching EUR 2.87 billion. Net revenue from domestic sales was EUR 272.6 million, while export sales contributed EUR 2.6 bln.
The company had after-tax revenues of EUR 141.7 mln, which it placed in retained earnings and will reinvest. Magyar Suzuki will pay no dividends on the 2023 result
Currently, two models, the Vitara and S-Ccross, are being produced in Esztergom and are only available with a hybrid drive system for the European markets.
Masato Atsumi, CEO of Magyar Suzuki Zrt.; Róbert Krisztián, deputy CEO; Ildikó Fejesné Gyurján, chief operating officer for HR, finance, and IT; and head of communications Zsuzsanna Bonnár-Csonka all spoke at the press conference, discussing the company’s past year and future outlooks.
“The plant’s success is highlighted by the production of 160,338 cars, with 88.5% hybrids. In 2023, the Vitara and S-Cross models were particularly notable, with the Vitara being more popular in-ternationally and the S-Cross favored by Hungarian buyers. These hybrid models have been crucial in maintaining high production levels,” Krisztián explained.
The deputy CEO added that, despite a shrinking Hungarian new auto market in 2023, which saw a 3.4% decrease in registrations, Suzuki managed to increase its market share to 11.3%, or 12,167 vehicles, with 51% of these sales going to corporate and institutional customers. The resilience of the Suzuki brand is noteworthy, reflecting a robust strategic approach, Krisztián said.
From left: COO Ildikó Fejesné Gyurján; CEO Masato Atsumi; head of com-munications Zsuzsanna Bonnár-Csonka; and deputy CEO Róbert Krisztián.
Magyar Suzuki also made significant investments at Esztergom amounting to EUR 55 mln in 2023 to enhance production capabilities and sustainability efforts. These are part of a broader strategy to modernize the plant, which remains the Suzuki Motor Corporation’s only European manufactur-ing base. The company says its continuous investment in technology and infrastructure demon-strates its commitment to maintaining a competitive edge in the automotive industry.
In addition to the autos produced in Esztergom, the company sold 894 units of the Swift, 252 units of the Ignis, 86 units of the Swace (a hybrid estate car based on the Toyota Corolla Touring Sports), and 20 units of the plug-in hybrid Across SUV in Hungary in 2023. All models are already in line with forthcoming regulatory changes. From July 7, the European Union is making the instal-lation of more driver support systems mandatory.
“The Vitara model underwent a significant renewal, with the four millionth Suzuki car, a hybrid Vitara, rolling off the production line on Feb. 8, 2024,” Atsumi told the press conference. Similarly, the S-Cross celebrated its 500,000th unit produced in Esztergom in September, further solidifying its popularity among Hungarian consumers.
Magyar Suzuki insists it has made strides towards sustainability by inaugurating a solar power park in February 2024, the culmination of a two-year project that represented an investment of HUF 778 mln. It is expected to save the company approximately HUF 270 mln annually and reduce CO2 emissions by more than 1,700 tonnes.
The Japanese parent company has invested more than EUR 2 bln EUR in Hungary since 1991. In recognition of more than three decades of work, Magyar Suzuki Zrt. was presented with an “Investor Lifetime Achievement Award” by the Hungarian Investment Promotion Agency in February 2024.
With the opening of the Suzuki Education Center in September 2023, the company joined the dual training system, thus focusing on training the younger generation and skilled workforce alongside university collaborations and internship programs.
The firm’s marine and motorcycle divisions also showed impressive growth. The marine division sold 497 boat engines in 2023, maintaining its market leadership in Hungary and the region. Meanwhile, the motorcycle division saw an 18.8% increase in sales, with 372 new two-wheelers delivered to customers, securing a 5.7% market share in Hungary.
Magyar Suzuki believes it faces a challenging year ahead, with expectations to sell around 130,000 cars in 2024, a decrease of around 30,000 from last year. This anticipated decline is at-tributed to the stabilization of dealer inventories. Despite this, the company remains optimistic about its long-term prospects. Suzuki plans to introduce five electric models by 2030, with aspira-tions for the Esztergom plant to play a pivotal role in their production.
Esztergom will also see further investment this year, focusing on technology and equipment up-grades, automation, and decarbonization (waste heat utilization) in the bumper, painting, and welding plants.
“The company’s strategic focus on innovation and sustainability is further evidenced by the con-tinuous investments planned for 2024, totaling EUR 75 mln. These investments aim to enhance the production processes and introduce new technologies, ensuring that the Esztergom plant remains at the forefront of automotive manufacturing in Europe. The investments reflect a forward-looking approach, preparing the company to meet future challenges and market demands,” Atsumi said.
This article was first published in the Budapest Business Journal print issue of June 28, 2024.
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