Hungary FM: Suzuki Modernization Investment Further Bolsters Hungary's Role in Auto Industry

Suzuki's production development and energy efficiency investment will further improve the competitiveness of the Japanese automaker’s plant in Esztergom, thereby bolstering Hungary’s leading role in the global automotive industry, announced Foreign Affairs and Trade Minister Peter Szijjarto on Tuesday in Esztergom, according to a statement from the ministry.

Peter Szijjarto, Foreign Affairs and Trade Minister of Hungary (Photo: AFP)

At the inauguration of Magyar Suzuki Zrt.’s production development and energy efficiency project, Foreign Affairs and Trade Minister Peter Szijjarto highlighted that the Hungarian state provided 1.9 billion forints (approx, €4.8 million) in support for the over 9-billion-forint (over €22.6 million) project. The investment includes expanded capacity in the bumper production, paint shop and welding units and marks a significant step toward carbon-neutral operation of the facility.

FM Peter Szijjarto: The competitiveness of the Japanese car manufacturer's Esztergom plant continues to improve (Photo: ANADOLU/EMIN SANSAR )

He emphasized that through increasing digitalization and automation, Hungary’s leadership in the global automotive sector is being reinforced. He also noted that Suzuki operates its only European manufacturing plant in Esztergom, making it a natural hub for logistics and IT services.

Szijjarto welcomed the fact that more than one-third of Suzuki’s suppliers are Hungarian companies, and that the developments offer significant opportunities for domestic small and medium-sized enterprises.

He also pointed out that Suzuki was once again the market leader in new car sales in Hungary last year, with a market share of between 13–14%, holding the top position for the 21st time.

The minister stressed that 

Suzuki has played a major role in the Hungarian automotive industry’s continued record-breaking performance. In 2023, the sector’s production value reached 13 trillion forints (almost €32.6 billion), a sign, he said, that "the backbone of the Hungarian economy is in good and stable condition."

He also reflected on the crises of recent years, noting that the global economic status quo has shifted, the West's previously assumed stable hegemony has weakened, while the East has advanced significantly in technology across many industries.

This shift, he said, has triggered global competition for Eastern investments — a competition in which Hungary is performing well. Currently, three of the ten largest investor communities are made up of Eastern companies, compared to only one previously.

“We have entered the fierce competition for Eastern corporate investments successfully,” he said. “This is confirmed by record-breaking investment figures year after year. It’s clear to everyone how important Japanese companies and their investments are in breaking these records.”

Szijjarto emphasized that 

Japanese investments in Hungary consistently bring cutting-edge technology and support a structural shift in the economy by offering high added value and a strong emphasis on research and development.

He also noted that Japanese firms now make up the 9th largest investor community in Hungary, with nearly 200 companies employing close to 30,000 people.

Over the past ten years, the Hungarian government has supported 73 major Japanese corporate investments, totaling 670 billion forints (approx. €1.7 billion) in value and creating more than 5,000 new jobs,

he underlined.

Lastly, he called it good news that industrial production in Komarom-Esztergom County has tripled over the past decade, surpassing 5 trillion forints (over €12.5 billion).

“This may be partly due to the 144 major investments supported by the Hungarian government in this county over the past ten years, which totaled more than 2,000 billion forints (over €5 billion) and contributed to the creation of nearly 15,000 new jobs,” he added.

Cover Photo: Peter Szijjarto, Foreign Affairs and Trade Minister of Hungary (Photo: AFP)