Economy 9 February 2024, 12:56pm

Suzuki Hungary to cut output by almost 20% in 2024

Portfolio

The Hungarian plant of Japanese carmaker Suzuki plans to manufacture 130,000 passenger cars this year in Esztergom, which would mark a 18.75% reduction over the 160,000 cars churned out in 2023, according to preliminary data, Magyar Suzuki announced on Friday.

Over the past 30 years or so, Suzuki's Esztergom plant has produced 7 models, currently the Vitara and S-Cross, which are exported to 123 countries around the world.

However, as reported by Portfolio, the company suspended production of the Vitara and S-Cross models between 15 January and 22 January after the supply disruption caused by the Red Sea crisis. Production resumed on 22 January, but the company said that following a change in delivery routes, the ships will be diverted to the Cape of Good Hope in South Africa instead of the Red Sea,

and the route change could have an impact on the company's prices.

Magyar Suzuki's total net sales for the financial year 2022 were €2.14 billion, of which €271 million came from domestic sales and €1.87 billion from export sales. Sales in Hungary grew by 2.3 percent and export sales by 26 percent this year. Profit after tax was EUR 22.7 million.

According to Datahouse data, 12,167 Suzuki models were newly registered in Hungary in 2023, giving the manufacturer a 11.3% share of the Hungarian new car market.

As for this year,

the comany plans to manufacture 130,000 cars this year, down from 160,000 in 2023 (preliminary data), which would mark a 18.75% reduction.

The company generally publishes its annual reports in May or June.