Multibillion-dollar factory improvements at Magyar Suzuki

Magyar Suzuki’s financial results in 2023:

• Net revenue from total sales: 2,871.3 mln EUR
• Net revenue from domestic sales: 272.6 mln EUR
• Net revenue from export sales: 2,598.6 EUR
• Investment based on procurement 54.7 mln EUR in value
• Compared to the year 2022, it increased its revenue from domestic and export sales by 33.9 percent
• After-tax result: 141.7 mln EUR, which the company placed in retained earnings and reinvests in investments.
• Magyar Suzuki did not pay dividends this time either

88.5 percent of the production was hybrid

Magyar Suzuki had an eventful and efficient year in 2023. Currently, two models, Vitara and S-CROSS, are being produced in the Esztergom plant, and they are only available with a hybrid drive system for the European markets. 

Magyar Suzuki’s production and sales results in 2023:

• 160,338 cars rolled off the production line
• 161,763 cars sold, of which 156,213 were manufactured in Esztergom
• 148,954 cars were exported to 123 countries around the world, of which 145,256 were Hungarian-made (79,851 Vitara, 65,405 S-CROSS)
• Domestic sales were 12,809 cars, of which 10,957 were domestically produced (4,890 Vitara, 6,067 S-CROSS). 
• 88.5 percent of the production, a total of 141,847 vehicles, were hybrid. 

Vitara continues to be more popular abroad: the model was renewed this year, and on             February 8, 2024, the 4 millionth Suzuki , which was a hybrid Vitara, rolled off the assembly line in Hungary. However, among Hungarian buyers, the S-CROSS is more popular: in September last year, the 500,000th  model was produced in Esztergom. Its domestic recognition is well demonstrated by the fact that last year, in addition to the audience award, the professional jury also selected it first among 39 cars from 22 brands at the Car of the Year competition. From July 7, 2024, the European Union is making the installation of more and more driver support systems mandatory, which also affects the production of Magyar Suzuki: Vitaras will be on the market from May, and S-CROSSes from June, with the new equipment required by the regulations. 

Changing market conditions

The quantity of passenger cars made in Esztergom increased by 24.3 percent compared to the year 2022, while the Hungarian new car market continued to shrink: during 2023, 107,720 passenger cars were registered in the country, 3.4 percent less than a year earlier. With the registration of 12,167 cars, Suzuki achieved a market share of 11.3 percent in the domestic market. 51 percent of registered Suzukis 6,157 passenger cars, went to corporate and institutional customers in 2023.

Three core models have also been renewed for 2024

The models not manufactured in Esztergom but sold in Hungary accounted for 10.3% of the brand’s total domestic sales. In 2023, 894 units of the Swift, 252 units of the Ignis, 86 units of the Swace, and 20 units of the plug-in hybrid Across SUV found new owners in Hungary. The Suzuki brand is steadily advancing in earning the trust of customers. In the first half of the year, the fourth generation of the Swift arrived, and the Across and Swace models were also renewed.

Lifetime Achievement Award, Health Center, and Dual Training

Magyar Suzuki remains the only European manufacturing base of Suzuki Motor Corporation. The Japanese parent company has invested more than 2bln EUR in Hungary since 1991. In recognition of over three decades of work, Magyar Suzuki was honored with an Investor Lifetime Achievement Award by the Hungarian Investment Promotion Agency (HIPA) in February 2024. Last June, the Suzuki Health Path program was launched, providing 15 types of private healthcare services free of charge to Suzuki employees. Evaluating the developments for organizational growth and employee welfare, Magyar Suzuki earned the Family-Friendly Workplace certification last year. Additionally, with the opening of the Suzuki Education Center in September last year, the company joined the dual training system, thus focusing on training the younger generation and skilled workforce alongside university collaborations and internship programs.

The Marine Division maintains its market leadership

However, Magyar Suzuki is involved not only in automobiles but also in outboard engines in Hungary and the region. Since 1999, the marine division has been selling boat engines, parts, and accessories. Currently, in addition to 11 sales points in Hungary, it serves as a distributor for 11 foreign partners in Central and Eastern Europe.  As an expert in four-stroke outboard engines, they sold a total of 497 boat engines in the domestic market last year, successfully maintaining their market-leading position. 

The domestic motorcycle market expanded

The motorcycle division collaborates with 14 domestic dealers, complemented by two scooter dealers. In addition to vehicles, the sales points offer spare parts, lubricants, accessories, and motorcycle gear to customers. In 2023, the Hungarian motorcycle market expanded by 26.1%. A total of 372 new Suzuki two-wheelers were delivered to customers, marking an 18.8% increase compared to the previous year. With a market share of 5.7%, Suzuki secured fourth place in the competition among brands in Hungary. Magyar Suzuki also supplies the markets of 13 other countries.

Goal: sustainable manufacturing and operations

Magyar Suzuki has made a significant step towards sustainable operations and production. Since February 2024, the plant has been generating electricity using its own solar power park. The entire investment took two years and cost 778mln HUF. As a result, the company saves approximately 270mln HUF annually and reduces its indirect CO2 emissions by more than 1,700 tons.

This year, the multi-billion forint development of the Esztergom plant continues. The investments focus on technology and equipment upgrades, automation, and decarbonization (e.g., waste heat utilization) in the bumper, painting, and welding plants.