Domestic Car Brands Outperform Western European Competitors
The Hungarian automotive industry has been experiencing great success, sending a clear message to manufacturers and investors that keeping production in Hungary is an economically rational decision. István Joó, government commissioner and CEO of the Hungarian Investment Promotion Agency (HIPA), shared this sentiment at a conference in Budapest, where he highlighted that over 507,000 vehicles were produced in Hungary last year. With ongoing developments and upcoming investments, the country is on track to exceed 1 million cars produced annually in the near future.
Joó emphasized that only five countries in Europe are currently capable of achieving such high production volumes, showcasing Hungary’s competitiveness in the industry. He also mentioned the strong demand for Hungarian models and the rapid development of the automotive ecosystem in the country, including investments in software development, self-driving cars, alternative drives, composite technologies, and testing.
The commissioner pointed out that Hungary’s automotive performance in the past year has surpassed pre-pandemic levels, unlike other countries that have experienced declines in production volumes. He attributed this success to key automotive centers in Hungary, such as Esztergom, Szentgotthárd, Győr, and Kecskemét.
Looking ahead, Joó highlighted the importance of the electric car transition and the role Hungary plays as a connecting point between Western and Eastern technologies in the automotive sector. He expressed concerns about the European Union’s intention to distort competition with extra tariffs, emphasizing the need for companies to focus on producing better and more affordable electric cars through research and development.
To drive further progress in electromobility, Joó stressed the importance of expanding the infrastructure for electric vehicles, including the network of charging stations. He also mentioned the need to enhance battery range and reduce production costs to make significant advancements in the industry.
Overall, the success and growth of the Hungarian automotive industry demonstrate its competitive edge and potential for further development in the evolving landscape of electric vehicles and technology. The country remains a key player in the European automotive market, attracting investments and driving innovation in the sector.
