Suzuki S-Cross, Vitara SUVs to vanish from Russian showrooms. Here's why
Suzuki Motor Corp. has announced a stop on vehicles from its Hungarian factory for the Russian car market following Moscow's invasion of Ukraine late last month. The decision comes in line with several similar measures announced by several automotive brands across the globe and Suzuki says existing orders affected by the conflict will be shipped to other markets.
Suzuki reportedly exports around 10,000 units each year from Hungary to Russia and Ukraine, a significant part of the around one lakh units exported from here to foreign markets overall. The Suzuki Vitara and SX4 S-Cross SUV models are manufactured at the Hungarian facility but won't make way from here to either of the two countries locked in the bitter and ongoing conflict. "Our company has no direct Tier 1 suppliers in the areas affected," said Zsuzsanna Bonnar-Csonka, company spokesperson. “However, we are continuously monitoring the entire supply chain."
The decision, combined with snubs from several global auto brands, is likely to create a big shortage of vehicles available within Russia. In turn, supply of Russian steel could adversely impact global automotive production as well.
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With no near end to the entire conflict in sight, the prevailing situation for automotive giants is rather challenging. T he global shortage in semiconductor chip already continues to create mammoth hurdles and the conflict between Russia and Ukraine, apart from other fallout, is giving birth to newer hurdles.