Hungary’s Automotive Industry Navigates an Era of Rapid Change
Welcome to the second edition of Top 50 Automotive Executives, following the highly positive reception of last year’s publication. This year, we continue our deep dive into Hungary’s automotive sector, shining a light on the key individuals and companies shaping the industry’s future.
Building on Hungary’s already strong foundation as a critical player in the global automotive market, this edition also reflects the nation’s growing influence as a vital link between East and West.
Hungary’s strategic location and its ability to attract international automotive giants, such as Audi, Mercedes-Benz, Suzuki, and BMW, have cemented its role as a cornerstone of the European automotive landscape. In addition to hosting these wellestablished manufacturers, Hungary is also home to an expanding network of suppliers, tiremakers, and electromobility innovators. This unique position allows the country to connect global supply chains, acting as a vital node in the automotive industry’s shift toward a more interconnected and sustainable future.
As we look ahead, the focus on electric vehicles (EVs) is rapidly becoming a central theme. While the industry has faced challenges, including a temporary slowdown in demand, Hungary is wellpositioned to lead the electric vehicle revolution in Europe. Experts predict that by the 2030s, EVs will gain significant traction, ushering in a new era for
the global automotive industry. Hungary’s government and industry leaders have already laid the groundwork for this shift, investing heavily in battery production, EV components, and charging infrastructure.
Despite the temporary hurdles, Hungary remains an attractive destination for investment, particularly from Asian markets, which see the country as a key production hub for the next generation of vehicles. The Hungarian Investment Promotion Agency has played a vital role in this by continually positioning Hungary as a leader in automotive innovation, supported by a skilled and highly capable workforce.
In this 2024 edition, we not only highlight the top 50 automotive executives driving the industry forward but also feature exclusive insights from some of the most important players in the sector. These leaders provide their perspectives on the future of the automotive industry, the ongoing transition to electromobility, and the strategies needed to remain competitive in an ever-evolving global market. Their views offer a comprehensive look into the trends shaping the industry, from sustainability initiatives to supply chain resilience and the integration of advanced technologies.
With Hungary’s automotive industry now employing more than 200,000 people, it remains one of the key pillars of the country’s economy. As the sector continues to evolve, we believe this publication provides valuable insights into the figures and forces that will shape its future. From traditional manufacturing to cutting-edge electric mobility, Hungary’s automotive sector is set to remain a global leader, ensuring the nation’s continued success in this competitive and transformative industry.
Bence Gaál Editor
Frame Group Embraces New Technology to Stay Ahead of a Maturing Market
To the uninitiated, cleanliness and the factory floor are probably not the most obvious connection. But think of an automaker’s paint shop or an electronics manufacturer’s assembly line; contaminants in the paint or dust on sensitive electronic components could have disastrous consequences. And you don’t have to ensure everything is spotless just once, but every hour of every day of operation. Given all that, long-term contracts are their own form of recommendation.
By Robin Marshall
One such example is Frame Group, which has been responsible for the facility management of the Magyar Suzuki facility in Esztergom (48 km northwest of Budapest by road) since 2016. It is a relationship that has stood the test of time and speaks to the level of care Frame guarantees the Japanese manufacturer, as well as the trust between the partners, says Attila Puskás, shareholder and executive board member.
And lest you should think these are just nice words without real-world consequences, Puskás cites a current example of a Hungarian component maker who supplied a faulty part to a different automaker, leading to the recall of 1.4 million vehicles by the OEM in question. You only have to get things wrong once, and it can become a very expensive business.
In other words, it is a relationship at another level to the standard contract to clean an office, for example. In those cases, the landlord is generally more interested in the end service than how it is delivered. Suzuki, on the other hand, wants to understand what Frame is doing and why it is doing it.
“I would say it’s more about transparency, and that’s actually much better for the supplier because it means
you are not alone, you have support and a real partner, not just a client, and you can develop and build new steps proactivity based on that,” says Puskás.
“They want to see more deeply what we are doing, how many staff and what kind of detergencies we are using, what tools we apply, and what our experience from the market is,” he explains. “On the other hand, they will tell us about the experiences from other Suzuki factories, what they have found with other suppliers, and what they have figured out. They are not constantly looking to renegotiate the terms, but they are keen to get the continuous improvement cycle up and running, for example, or sustainability and so on.”
Attila Puskás, shareholder and executive board member of Frame Group.
Image by Thomas Katona
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Czech-Hungarian Collaboration Unveils New Electric Midibus Prototype
Hungarian company Ganz and Czech collaborator SOR have showcased the brand new Ganz-SOR EBN8 electric midibus prototype. If serial production is given the go-ahead after obtaining type approval, the partners could produce 50 units of the vehicle per year.
Driving the Electric Revolution: Empower Your Impact with Investment and R&D Subsidies
Tamás Szűcs, partner and automotive industry Leader at EY Hungary, explores the challenges and opportunities facing Hungary’s automotive sector amid the global shift towards electromobility. He highlights how Hungarian subsidiaries can leverage government aid and investment incentives to strengthen their position within corporate groups and drive long-term growth in electric vehicle manufacturing and R&D.
Tamás Szűcs, partner – tax & state subsidies; automotive industry leader at EY Hungary.
Hungary Looking to Position Itself as Electromobility Frontrunner
In the European Union's industrial strategy, the environmentally friendly and digital transformation of the automotive industry plays a key role, and Hungary is looking to position itself as the frontrunner in this transformation.
The EU has set two important target dates: by 2035, passenger cars, light commercial vehicles, and urban buses will be emission-free, while by 2040, heavy-duty trucks will be produced with 90% emissions reduction.
This fall, Gergely Fábián, Minister of State for Industrial Policy and Technology of the Ministry of National Economy, participated in a high-level roundtable discussion in Brussels at the invitation of Thierry Breton, European Commissioner for the Internal Market, on the monitoring and progress of the transition to zero-emission vehicles, the ministry said.
GAUGING PROGRESS AND CHALLENGES
During a roundtable discussion, participants discussed the current status, progress, and challenges of the EU's transition to zero-emission vehicles. Special emphasis was placed on affordability, the importance of developing charging infrastructure, expanding the capacity of the electricity grid, and ensuring the availability of batteries and critical raw materials. Developing the charging infrastructure is crucial for a smooth transition, particularly in areas outside the transEuropean transport network. The lack of infrastructure and adequate coverage hinders the growth of demand for electric vehicles.
The current state of the automotive industry was also a key topic during the roundtable. While the demand for electric vehicles must increase in line with climate neutrality goals, the global competitiveness of the automotive industry must also be maintained.
LOOKING FOR WAYS TO IMPROVE
The recommended measures included improving affordability, further expanding the charging infrastructure, increasing the capacity of the electricity grid, expanding retraining programs
Thierry Breton
Photo by Alexandros Michailidis / Shutterstock.com
The Evolution of EV Charging Solutions and Future Innovations
In an exclusive interview, László Károlyi, CEO of Legrand Hungary, delves into the company's strategic developments in the electric vehicle (EV) charging market. He discusses the growing importance of decentralized charging solutions, the key differences between home and public chargers, and introduces the latest innovations in Legrand’s Green’up and Ecotap product lines.
When did Legrand’s chargers arrive in our country? How did the local EV charging market compare to the rest of the region then, and how does it stand now?
László Károlyi: Legrand Group, a global specialist in building digital and electrical infrastructure, surprisingly ties into electromobility. The “fuel supply” for electric cars is different from traditional cars both in timing and frequency due to the technology. Therefore, it is logical that charging options need to be available almost everywhere—at work, at home, in public spaces—wherever cars are parked, rather than being concentrated like traditional gas stations.
The reason for this is simple: charging electric batteries takes longer, even with a super-fast charger, and the lifespan of electric batteries is also determined by how charged they are, similar to what we’ve learned from mobile batteries, which operate best between 20-80% charge. Therefore, electric cars need to be charged often and regularly, ideally in every parking spot, to maintain their autonomy and ensure the longevity of the battery, which is the car’s most valuable component. This is the umbilical cord that connects electromobility to buildings, and it is the business segment in
Siemens Powering the Future of Automotive Manufacturing
As the global automotive industry evolves with advancements in electric vehicles (EVs), connected cars, and smart manufacturing. In this article, Tamás Jeránek, CEO of Siemens Zrt., explains Siemens’ pivotal role in driving this transformation, positioning the company at the forefront of innovation and technological progress.
With its cutting-edge solutions in automation, electrification, digitalization, and sustainability, Siemens is at the heart of the automotive revolution, empowering car manufacturers and suppliers to operate smarter and more efficiently.
The automotive sector is a core industry for Siemens, contributing approximately 19% of its Digital Industries business. The company boasts partnerships with the top 15 automotive players worldwide, including all German car manufacturing plants in Hungary. Globally, 23 of the top 25 car manufacturers rely on Siemens’ innovative solutions, and it's not just the large factories benefiting—tier 1 and tier 2 suppliers in the automotive supply chain are also leveraging Siemens' technology to stay competitive.
SIEMENS’ STRENGTHS IN AUTOMATION AND DIGITALIZATION
The automotive industry is undergoing rapid transformation, particularly in the realms of automation and digitalization. Modern car manufacturing is driven by advanced technologies such as robotics, artificial intelligence (AI), and the Internet of Things (IoT). Siemens, through its Digital Industries division, provides the automation and digitalization tools needed to meet these challenges head-on. From product lifecycle management (PLM) to production lifecycle management, Siemens covers every facet of automotive manufacturing, from power supply and body shops to battery assembly and logistics.
Is Sustainable Mobility Solely Dependent on Electric Vehicles?
The company car fleet market appears to be stabilizing, with the delivery of new vehicles resuming at the pre-pandemic pace. However, rising lease costs continue to pose challenges for companies. Despite these challenges, many firms are showing interest in transitioning to electric vehicles, which are often more expensive. Yet, the selection of company cars is still heavily influenced by status and position rather than actual usage needs.
By Gergely Herpai
Ayvens, Hungary's largest fleet management and mobility service provider, conducted a survey of 150 executives and fleet managers, as well as over 200 company car drivers, to assess the current state of the fleet market.
CHALLENGES IN THE FLEET MARKET
For the majority of fleet managers (63%), the biggest challenge over the past year has been the increased monthly costs of new vehicles. According to Tímea Pesti, CEO of Ayvens, operational leasing remains the most viable option for companies in the current economic climate. “Over the past year, the market has contracted, with a focus on cost optimization and the rational reorganization of fleets,” Pesti explained. “Nevertheless, operational leasing continues to grow in popularity. In fact, outsourcing fleet management has become a megatrend, allowing companies to avoid the financial risks associated with maintenance, servicing, and residual values, while benefiting from fixed monthly costs.”
When asked about their fleet plans for the next one to three years, more than half of fleet managers and executives indicated a shift toward partially electric fleets. Some 16% are considering introducing car-sharing services, and 8% are looking at incorporating micromobility solutions. Interestingly, 40% are exploring a combination of these options, aiming to create a comprehensive mobility package.
“We are seeing increased demand for electric vehicles among our customers, largely due to the commitments made by their parent companies abroad,” Pesti noted. “But sustainability is not just about electric cars; a lot depends on company car policies and how vehicles are used.”
About 72% of fleet managers and executives said that company car selection at their organizations is based more on status and position rather than actual usage needs. Fewer than one-fifth (19%) reported that car categories are primarily aligned with personal usage requirements. Only a small minority (8%) said that their company’s fleet is tailored strictly to business needs in terms of size and features. Despite this, the majority of fleet managers, executives, and drivers view the current system of car allocation as fair and reasonable.
However, when asked about potential changes to the system, 48% of fleet managers and executives indicated that they would consider redesigning their fleets based on actual usage needs rather than status or position. Additionally, almost one-third are considering introducing pool cars for occasional use, while 15% are looking at encouraging alternative modes of transportation. Ten percent are considering providing transport allowances as an alternative to company cars.
COMPANY CARS AS STATUS SYMBOLS
A significant majority (58%) of fleet managers and executives agree, to some extent, that company cars are seen as status
Charting the Course for the Automotive Industry in Central Europe
The Automotive Business in CEE Region Conference 2024, held in Budapest, brought together industry leaders, experts, and key stakeholders to discuss the evolving landscape of the automotive sector in Central and Eastern Europe.
Image by Gorodenkoff
Hungary’s Automotive Sector Marching Towards Becoming Quintessential Regional Hub
Over the past year, Hungary has further cemented its place as a critical hub for automotive investment, particularly in the rapidly growing electric vehicle (EV) sector. Foreign direct investment (FDI) in 2023 reached an all-time high, hitting EUR 13 billion and creating nearly 20,000 jobs, according to Hungarian Investment Promotion Agency (HIPA). The nation's strategic geographic position in Central Europe—where East meets West—continues to make it an attractive destination for both Western and Eastern companies seeking to establish or expand their operations in Europe.
Mono Group: Going Strong Against all Odds out There
Automotive in Europe is under a lot of pressure not only because of Chinese competition but also due to stagnating electric vehicle sales and sluggish economic growth. Luxury interior specialist Mono Group defies all that negativity; no wonder its position remains solid in the top league of the industry. MONO’s heavily automated production halls are also home to state-of-the-art equipment that perform selective brushing on aluminum, among others.
AUTOMOTIVE EXECUTIVE BIOGRAPHIES
In this section, we delve into the minds of the top executives shaping the Hungarian automotive industry. From seasoned manufacturers to pioneering suppliers and forward-thinking innovators, these leaders offer a wealth of experience and knowledge. Their unique perspectives are crucial in understanding not only the challenges and opportunities facing Hungary's automotive sector but also the specific dynamics within their own subsegments.
Through these biographies, we explore their career paths, uncovering the key moments that brought them to the forefront of the
industry. We ask these experts to share their insights on navigating the rapidly changing landscape, from supply chain disruptions to the electrification revolution. Their thoughts provide a comprehensive look at the strategies needed to thrive in an evolving market, as well as their visions for the future of both Hungary’s automotive sector and the broader global stage. From technological advancements to sustainability efforts, the executives in the following section share their approach to leading their companies into the future, ensuring Hungary remains a driving force in the global automotive industry.
