Top 50 Automotive 2023 Sample

Keeping the Wheels of Success Turning

Hungary’s automotive industry is one of the most significant sectors of the country’s economy. As a major producer and supplier of components and finished products, Hungary plays a vital role in the global vehicle market. The industry has become a key driver of economic growth in Hungary, and the number of people earning their keep at a company indirectly or directly involved with automotive matters is slowly inching toward 200,000.

Since the 1990s, Hungary has emerged as a significant player in the European automotive industry. The country’s strategic location, skilled workforce, and favorable business environment have attracted a growing number of international companies and suppliers. Hungary is today home to some of the world’s leading car manufacturers, including Audi, Mercedes-Benz, Opel, and Suzuki; BMW is set to launch operations at a plant in Debrecen shortly. Hungary is also home to bus companies, tiremakers, and electromobility pioneers, and the country even boasts state-of-the-art testing facilities utilized by the sector’s key players.

The automotive sector accounts for a significant share of the country’s exports and contributes to the development of other sectors of the economy, such as logistics, research and development, as well as education, as we see the emergence of numerous partnerships between leading companies and the best universities. Furthermore, the industry’s growth has been accompanied

by the expansion of Hungary’s supplier network, which has become increasingly integrated into the global supply chains of automotive companies.

This decade has posed significant economic challenges for the automotive industry, such as supply chain disruptions caused by the coronavirus pandemic and the shock of the Russo-Ukrainian war soon after. However, the Hungarian automotive scene remains resilient, having largely managed to shake off the consequences of these events successfully. Furthermore, we are currently witnessing a new revolution with the rapid emergence of electric vehicles, which continue to carve out a larger market share each year. Hungary is at the forefront of this revolution, quickly becoming one of the key players on the continent, not just in EV production but also in manufacturing batteries and critical components, with investment pouring into the country from all over the globe, especially Asia. The Hungarian Investment Promotion Agency has also been an essential factor in promoting these developments, always looking to position Hungary as a true pioneer of innovation in the heart of the region and capitalizing on the country’s immense intellectual workforce resources.

In this publication, we will look at the most important manufacturers and suppliers in the sector, examining their contributions to Hungary’s economy. The book contains information about more than just 50 companies, and to give you a clearer picture of the state of the sector, we asked the leaders of some of the biggest automotive businesses in the country their recipe for staying competitive in an ever-changing global market.

Bence Gaál Editor

Automotive Trends: Operation Catch-Up

As automotive stakeholders struggle to stay relevant in an era shaped by electrification, self-driving and sustainability, they are forced to use every item in their toolkit to prevail. The 2023 Automotive Conference of the Hungarian Investment Promotion Agency (Hipa) provided key insights by senior executives of Hungarybased OEMs and renowned experts on the latest developments of the industry. What looks certain is that Western companies have a lot of catching up to do in the EV segment given Chinese competition has rushed ahead at break-neck speed.

Car sales have been dropping the past years worldwide which is normally bad news for stakeholders. However, since the drop stemmed from supply constraints rather than sluggish demand, top OEMs managed to improve profitability a great deal. The current rate of 7% is actually even expected to soar. Mercedes-Benz’s Hungarian operation was among the beneficiaries of the trend. It turns out they used the chip shortage as an opportunity, and they built semiconductors primarily into top end vehicles that generate more profits.

The plan worked so well that they intend to stick to it and increase sales of top end vehicles in every segment by 60% by 2026. Given that their “heritage is luxury”, that’s how they aim to keep profits high in the wake of the staggering costs of transition, Christian Wolff, managing director of Mercedes-Benz Manufacturing Hungary Kft. explains. Starting its biggest transformation of its history, the company invests EUR 1 billion in Kecskemét. “We will change the entire model portfolio of the existing plant and start building a second plant,” he provides a snapshot of the scale of ongoing investments.

Bridgestone Tatabánya Leading the Way in Innovative, Responsible Tire Manufacturing

The tire industry is constantly evolving, and Bridgestone Tatabánya is at the forefront of innovation and sustainability efforts. In an interview with the company's president and managing director, Melinda Topolcsik, she shares insights on the future of tires and the company's efforts to reduce its environmental impact and promote social responsibility.

How has Bridgestone's activity in Hungary evolved over the years, what do you consider the company's biggest achievements in the country so far?

Melinda Topolcsik: In recent years, I can say with certainty that Bridgestone Tatabánya has become one of the most influential tyre factories in the country and one of the largest employers in Komárom-Esztergom County. We started production 16 years ago with 361 employees and today, with around 1,450 workers, we are able to produce up to 6.5 million tires a year in a 154,200 sqm plant. Our well-thought-out business strategy has enabled us to increase our turnover despite the shortage of raw materials and logistical difficulties of the last year. I am proud that in 2019, 2020 and 2021 the Ministry of Human Resources awarded the factory the Family Friendly Workplace title, and in 2021 the Tatabánya factory was named Supplier of the Year. We are also doing our part to be socially responsible and support the region through donations, activities and volunteering.

What role does innovation play in Bridgestone's strategy for growth and competitiveness in the Hungarian market?

MT: Innovation clearly plays a very important role in the life of both Bridgestone and our factory. It is through continuous innovation and the application of the latest technologies that we can remain truly competitive. It is no coincidence that Bridgestone spends an outstanding EUR 780 million yearly on research and development on a global scale, the results of which can be seen in the 230 tires of different sizes that are produced in Tatabánya.

Can you talk about any recent initiatives or partnerships Bridgestone has undertaken in Hungary to promote social responsibility and community engagement?

MT: “Serving society with superior quality” is a main part of Bridgestone's core philosophy and our individual commitment as well. Every year we support local and regional organizations through donations, fundraising

“We want to spare no time and energy to make the everyday lives of those people even better, without whom Bridgestone Tatabánya would not function, and these are our employees and colleagues.”

‘Hidden Champion’ Shapes to Make ‘Interesting Jobs’

More Visible

The name of AVL is well known to those within the autoengineering community if not the wider public. A brand strategy is being implemented to remedy that and attract more talents, but AVL Hungary’s growth remains remarkable. Much of that is down to one man, managing director Dirk Janetzko.

THE TECHNOLOGY IS THERE; NOW IT’S ALL UP TO PEOPLE

SUCCESSFUL CRM SOLUTIONS FOR THE AUTOMOTIVE INDUSTRY

Soulware Zrt. was founded in 2009, primarily for the custom implementation and development of open-source CRM systems. At the same time as the joint stock company was founded, the fleet management service provider Eurofleet was launched. The cooperation between the two companies has been intertwined from the very beginning.

Eurofleet quickly grew to a fleet of thousands of vehicles, and their main competitive advantage became quality customer service and positive customer satisfaction, in which Soulware Zrt.’s CRM solution played a significant role. After more than a decade of cooperation, Eurofleet, which was exclusively Hungarian-owned, was acquired by a multinational fleet management provider, making their business success an essential reference for Soulware. This success paved the way for Soulware to become a successful CRM supplier to fleet managers and car dealers. We talked with Krisztián Darvas, CEO of Soulware, about CRM solutions in the automotive industry.

How can one enhance the customer experience in the automotive industry?

Krisztián Darvas: In the car trade, sales margins and the success fee are typically low, meaning price competition is fierce in the same category. This drives car dealers to differentiate themselves from competitors by offering services and a positive customer experience. This is where a wellfunctioning CRM can significantly help, offering solutions that can enhance the customer experience and thus increase sales.

What's the secret?

KD: There is no secret, there is only well and accurately functioning software support, thanks to which there are no forgotten promises or callbacks, but there

are well-defined internal processes and clear, correct communication. Today, the average car purchase price is close to HUF 10 million, a significant financial transaction in Hungary - so the customer has a right to expect the car dealer to carry it on his back. That's why customer experience, including CRM, has become a priority.

Does this mean that all car dealers are now using a CRM system?

KD: Unfortunately, not, I am convinced that a dealer who implements a professional CRM system could realize a significant increase in profits. The picture, especially in this country, is more complex. World brands and importers may have 30-50 or even 70 dealers in Hungary, which implies a vast network. As buying a car is now typically an emotional issue in a category, global manufacturers are also trying to standardize the customer experience at dealerships. They aim to provide prospective and returning customers with a well-constructed, measurable and identifiable positive customer experience. This is why, in many cases, they have developed their own CRM systems. Still, these are more geared towards serving the importer's hunger for information than supporting the local dealer's business success.

So where is Soulware's place in the car trade?

KD: A custom CRM solution that can be made compatible with the importer's CRM system may be optimum.

Eve Power to Build its 1st European Plant in Debrecen With an Investment of HUF 400 bln

Electric vehicles are the future of the automotive industry and Hungary is at the forefront of the “EV revolution” with several important investments made in the country in recent years. It is no wonder that the world's ninth largest electric battery manufacturer, China's Eve Power, picked the Hungarian city of Debrecen to build its first European plant with an investment of about HUF 400 billion.

Minister of Foreign Affairs and Trade Péter Szijjártó said that the company had come at the request of BMW to supply its Hungarian plant with a new generation of cylindrical battery cells, according to MTI. The state is providing HUF 14 bln in funding for the HUF 400 bln project, helping to create more than 1,000 new jobs. He also addressed the concerns of those afraid that the investment would negatively impact the local environment and water management.

He said that 95% of the environmentally friendly project’s water needs will be met from treated wastewater and surface water, and the company will recycle part of the process wastewater on site. He also noted that the government will finance further major developments in the city, such as the modernization of the water utility system, i.e. water supply and sewage disposal, to the tune of HUF 108 bln.

“I think that those who are rightly concerned about water here can be satisfied,” he said.

Szijjártó stressed that there are few issues in Hungary on which there is such a broad consensus as the importance of environmental protection.

“The government’s clear objective is to make Hungary a global leader in environmental protection. It is our

clear goal that Hungary should be among the countries that do the most to protect the environment and preserve our planet,” he said.

In this context, he recalled the European decisions calling for a green turnaround and underlined that to achieve this goal, the most polluting sources must be eliminated, including the electrification of road transport, which is responsible for 14% of emissions.

“Without electric cars, the European Green Deal cannot succeed, and there are no electric cars without electric batteries. Then the cause of environmental protection and the fight against global climate change would simply be lost,” he pointed out.

The minister said that with demand set to increase tenfold by 2030, the question is where the electric battery factories will be built in Europe and who will benefit from them.

“The countries that can attract the construction of electric battery factories will have a long-term guarantee that their economies will grow,” he said, adding that there is huge competition for investment in the sector and countries are doing their best to attract it.

“When we say that they are doing everything, it certainly includes fair means and unfair means. Unfair means, for example, is misleading people, creating fear without any

Automotive Hungary and Industry Days Fair Brings Together Sector’s ‘Crème de la Crème’

Photo by Péter Lakatos / MTI.

Software Tech Increasingly Important for Car Industry: Top-of-the-range Cars Run 100 mln Lines of Cod

Nearly 2,000 people from around the world attended the Craft software developers conference in Budapest, where one of the hottest topics was the importance of software in the automotive industry.

Automotive Companies