Business 15 June 2023, 4:50pm

Suzuki Hungary boosts export sales by 26% in 2022

Portfolio

In 2022, Magyar Suzuki, the Hungarian manufacturing operation of Japan's Suzuki Corp., produced a total of over 129,000 vehicles, and sold more than 128,500 cars, of which 124,600 rolled off the production line in Esztergom. 88% of total sales were exported to 123 countries. The total assets of Magyar Suzuki Corporation passed the EUR 1 billion mark for the first time in fiscal year 2022 and returned to pre-pandemic levels in terms of sales revenue, with over EUR 2 billion. Despite all the above, profits halved last year due to a steep rise in energy, raw material and component prices.

In 2022, Magyar Suzuki manufactured a total of 129,022 vehicles, and sold 128,536 cars, of which 124,561 rolled off the production line in Esztergom. 88% of total sales (113,817 units) were exported to 123 countries.

Magyar Suzuki has become the market leader in domestic new car sales for the seventh consecutive year with a market share of 12.43%, while export sales have increased by 26%.

The 32-year-old company's plant produces two models, Vitara and S-CROSS, which they are also available in mild hybrid and hybrid versions. While the Vitara was the most popular car in foreign markets (73,417 units, S-CROSS 38 020 units), the S-CROSS was the best-selling car in Hungary, with 7,338 units sold (Vitara 5,786 units). Hybrid vehicles accounted for 76.63% of production (98,876 units).

Magyar Suzuki closed 2022 with a sales revenue of EUR 2.14 billion. The Esztergom-based carmaker increased its sales in Hungary by 2.3% (EUR 271 million) and its export sales by 26% (EUR 1.87 million) compared to the previous year.

As before, in 2022 Magyar Suzuki Corporation did not pay dividends either and reserved the profit (EUR 22.7 million).

In 2022, the company in Esztergom made investments of EUR 39.2 million on acquisition basis.In last year's economic situation, the vehicle manufacturer continued to optimize its costs, improve its operations and internal processes. These innovations have saved the company HUF 3.3 billion over the past 13 years.

The motorcycle business also plays an important role in Magyar Suzuki Corporation's life: in addition to two-wheeled vehicles, 14 Hungarian dealers also sell original spare parts, lubricants, accessories and motorcycle accessories. In 2022, the Hungarian motorcycle market expanded by 12.9%, with Magyar Suzuki Corporation selling a total of 313 models, giving it a 6% market share.

Answering a question whether Suzuki will produce electric models in Esztergom, the company replied that "achieving and developing a carbon neutral society is a key part of Suzuki Motor Corporation's growth strategy."

"In fiscal year 2024 (by March 31, 2025), the introduction of pure electric cars in Europe will begin, with a total of five models planned by 2030.

Electric Suzuki will be available on the Hungarian market from 31 March, 2025 at the latest.

"The parent company's management has already indicated that it will continue to rely on Magyar Suzuki Corporation as its sole European base. The Esztergom-based company is currently studying the production needs and processes of the new technology, with the involvement of Suzuki Motor Corporation."

Cover photo: Getty Images