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