Magyar Suzuki to increase production

In respect to produced number of cars compared with same period last year, performance of MSC shows a 33% increase, and the sales unit number of Suzuki-produced cars in the first half of 2008 exceeds 151,000 cars. The company’s export sales reached a record monthly figure in July with a wholesale result of 27,104 units.Following the stable growth of previous years production-wise, MSC could, again, show an excellent performance for the January-June period of 2008, the company speculates. Of the 232,480 produced cars in 2007, 112,072 pieces rolled down the production line in H1, 2007. This year the company was able to produce 149,438 cars from January through the end of June 2008, which means a 133% performance compared with the same period of last year.
“The rapid growth in production is due to the measures and work done in the last years,” a statement issued by MSC states.
“One of the main objectives of the European Renaissance Program started in 2003 was the capacity expansion of the Hungarian subsidiary, as a result of which MSC wishes to produce 300,000 cars by the end of 2008.” Year 2008, therefore, is considered the peak of the program regarding the stable and heavily increasing mass production. This year’s new model, the Splash, is to be produced in 54,000 units per year at MSC, and the model is already regarded as a success reflected in sales as well as by the Car of the Year 2009 award nomination.
Besides production results, the number of sales units clearly supports the growth: in the first half of 2008 Magyar Suzuki sold 151,587 units, some 14,414 pieces to the domestic market and the rest (137,173 vehicles) to European countries. In the same period of last year Suzuki sold 116,252 cars; therefore this year’s performance means a more than 30% increase. The export markets of MSC-produced cars are expanding with new dealerships in Croatia, Slovakia and Romania. Despite the stagnating Hungarian market, the Company’s cumulative market share in the domestic field was 17 % in January-June 2008.
Total export of the Magyar Suzuki Corporation in the first half of 2008 with the revenue of Ft289bn ($1.8bn) contributed to total Hungarian export with the estimate of 3%; while in 2007 the company’s export sales income was Ft474.7bn ($2.95bn), a contribution to total Hungarian export of 2.76%.
The planned investment for 2008 is Ft31bn ($190m), including expansion and tool modernization.

Magyar Suzuki Corporation

 

The company was established by major shareholder Suzuki Motor Corporation in 1991. The kick-off model, Swift rolled down the production line in 1992, followed in 2000 by Wagon R+, Ignis in 2003, the new Swift in 2005, SX4 in 2006. Today, there are more than one million Suzuki vehicles - produced in the Esztergom factory - on  European roads.