Whether making two- or four-wheeled vehicles, Hungary’s role in mobility is constantly strengthening. As an overview by the Hungarian Investment Promotion Agency (HIPA) showcases, the country is a leading industrial investment hub that no longer attracts just the attention of car and battery-making investors but is also on the right track to becoming a bicycle manufacturing heavyweight.
To claim that automotive is big in Hungary is an understatement. It is enormous and makes the country a sectoral powerhouse in the EU. Some 700 automotive companies, including five original equipment manufacturers with production sites here, three with service centers, and 66 TIER1 suppliers, produce half a million autos and 2.1 million engines per year.
Moreover, Hungary is the only place outside Germany that hosts production units of all three premium German carmakers (Audi, BMW, and Mercedes). On top of that, it is the largest battery cell producer in Europe; with manufacturing capacity to hit 150 GWh by 2025, it is sure to remain among the frontrunners.
Foreign direct investment fuels the engine driving those impressive figures to a great extent. HIPA guided 176 large FDI projects in automotive between 2014 and 2021 that generated an investment volume of more than EUR 9.6 billion and created nearly 40,000 new jobs. In the past three years, the battery industry alone mobilized EUR 6.2 bln in FDI. Year after year, automotive is one of the sectors that attracts the most capital from foreign investors.
Sector statistics include the performance of the bicycle industry, which has a tradition […]