Published: December 06 2023
Hungary is rapidly becoming a major player in the electric vehicle industry, attracting global brands and creating job opportunities. With significant government support and a thriving automotive sector, Hungary is positioning itself as a hub for electric vehicle production.
Growing Presence in Electric Vehicle Manufacturing
Hungary is seeing a surge in electric vehicle manufacturing, with a planned development worth 25 billion forints (EUR 66bn) in Oroszlány, near Budapest. This development is expected to create 60 new jobs and contribute to the production of products suitable for hybrid and electric vehicles. Hungary is also the only country, besides China and Germany, where all three leading German car brands have production facilities.
Leading Battery Makers Investing in Hungary
Hungary has managed to attract five of the world's top ten largest battery makers to establish operations in the country. This is a significant achievement and further solidifies Hungary's position as a prominent player in the electric vehicle industry.
Impressive Growth of the Hungarian Automotive Sector
Over the past decade, the Hungarian automotive sector has experienced substantial growth, with the production value of the industry increasing by 3.5-fold. In 2020, the industry's production value reached a record-breaking 12,000 billion forints, and there was an additional 18% increase in the first nine months of 2021. This growth is testament to Hungary's success in attracting investments and expanding its automotive manufacturing capabilities.
Importance of US Investments in Hungary
US investments play a crucial role in sustaining the growth of the Hungarian economy. The US is the second-largest investment community in Hungary, and the government has signed strategic cooperation agreements with 14 US companies. This demonstrates the strong bilateral relationship and the significant impact of US investments on Hungary's economic development.
Promising Outlook for Future Growth
Bilateral trade between Hungary and its global partners reached a record high in 2020, and there has been an 11% increase in the first nine months of 2021. These positive trends indicate that Hungary is well-positioned for continued growth in the electric vehicle industry and is poised to achieve even greater records in the coming years.
Questions & Answers
What is the electric vehicle industry like in Hungary? Hungary has been experiencing significant growth in the electric vehicle industry. The country is attracting global brands and creating jobs through developments and investments. Hungary is the only country in the world where all three premium German car brands have production capacities, and it has also attracted five of the world's ten largest battery makers.
How many people are currently employed in the electric vehicle industry in Hungary? Currently, there are over 1,000 people employed in the electric vehicle industry in Hungary.
Where will the manufacturing of products for hybrid and electric vehicles take place in Hungary? The manufacturing of products for hybrid and electric vehicles will take place in Oroszlány, which is located west of Budapest.
How much is the planned development worth in Hungary's electric vehicle industry? The planned development in Hungary's electric vehicle industry is worth 25 billion forints (EUR 66 billion).
How much support is the state providing for the electric vehicle industry in Hungary? The state is providing 5 billion forints in support for the electric vehicle industry project in Hungary.
How many new jobs will be created in Hungary's electric vehicle industry? The project in Hungary's electric vehicle industry will contribute to the creation of 60 new jobs.
Which countries have production capacities for all three premium German car brands? Hungary is the only country in the world where all three premium German car brands have production capacities, along with China and Germany.
How has the production value of the car industry in Hungary changed over the past ten years? Over the past ten years, the production value of the car industry in Hungary has increased by 3.5-fold in terms of the combined growth of manufacturers and suppliers.
What was the production value of the car industry in Hungary last year? The production value of the car industry in Hungary last year was 12,000 billion forints, which was record-breaking.
What was the percentage increase in the production value of the car industry in Hungary in the first nine months of this year? There was an additional 18% increase in the production value of the car industry in Hungary in the first nine months of this year.
How important are US investments in Hungary's economy? US investments play an important role in maintaining the growth of the Hungarian economy. The affected companies represent the second largest investment community in Hungary, and the government has signed strategic cooperation agreements with 14 of them.
How has bilateral trade in Hungary been performing? Bilateral trade broke a record last year, and there was an 11% increase in the first nine months of this year. This suggests that another record high in bilateral trade can be expected in 2023.
