Business 12 June 2024, 3:49pm

Suzuki Hungary expects massive decline in sales in 2024

Portfolio

The Hungarian operation of Japanese carmaker Suzuki Corp. expects to sell 130,000 cars this year against nearly 162,000 sold in 2023. It also sees its turnover falling to EUR 2.3 billion from EUR 2.9 billion last year. Suzuki Hungary's management told a press conference on Wednesday that the parent company plans to introduce five electric models by 2030, and that they are aiming to have the Esztergom plant involved in their production.

Magyar Suzuki’s key production and sales results in 2023:

160,338 cars rolled off the production line, up 24.3% yr/yr;
161,763 cars sold, up 25.9% yr/yr, of which 156,213 were manufactured in Esztergom, up 25.4% y/ryr;
148,954 cars were exported to 123 countries around the world (92% of total sales, up from 113,817 or 88.6% in 2022), of which 145,256 were Hungarian-made (79,851 Vitara, 65,405 S-CROSS);
88.5% of the production, a total of 141,847 vehicles, were hybrid, up from 98,876 units or 76.6% in 2022.
the number of cars registered in Hungary reached 12,167 (10,957 of which were produced in Esztergom), which compares with 13,859 in 2022. The market share of the brand (new cars) came in at 11.3%, down from 12.4% in 2022;
10.9% of new passenger cars registered in Hungary last year were Suzuki models, down from 12% in 2022, according to Central Statistical Office (KSH) data.

Half of the vehicles sold in Hungary went to companies and half to private buyers.

Suzuki's engine business sold 372 vehicles, an increase of 19%. The marine division, which manufactures boat engines and parts, also reported an increase, with 497 boat engines sold.

Magyar Suzuki's net sales increased by 33.9% yr/yr to EUR 2.9 billion. Domestic sales amounted to €272.6 million and export sales to €2.6 billion. After-tax profit came in at €141.7 million, a more than sixfold growth. The company did not pay dividends, with profits being transferred to the profit and loss reserve.

The sales plan for this year is 130,000 cars, down from last year, as dealers have managed to replenish stocks this year. Turnover is projected to reach €2.3 billion.

The company spent €55 million on developments last year and plans to spend €75 million this year. Since its foundation, the Japanese owner has invested €2 billion.

It was also announced at the press conference that Suzuki plans to introduce five electric models by 2030, and Magyar Suzuki's ambition is to have the Esztergom plant involved in their production.