Hungarian Investment Promotion Agency

The automotive industry accounts for more than a quarter of Hungary’s total manufacturing production, which makes it a cornerstone of the country’s economy, and a strategic priority for HIPA – underlined the Government Commissioner for Investment Promotion and Implementation of Large FDI Projects in his opening remarks at the conference, organized with the support of German-Hungarian Chamber of Industry and Commerce (DUIHK) .

The next phase of the industry’s development in Hungary is all about creating as much intellectual added value as possible. HIPA’s mission is to firmly position Hungarian vehicle manufacturing on the global innovation map. That is why support schemes have been redesigned, and that is also the reason behind organizing the HIPA Automotive Conference every year.

We are navigating challenging times, which makes us even more grateful for the trust that the world’s leading car manufacturers place in Hungary

 – Mr. István Joó emphasized.

No alternative to global cooperation  

Minister of Foreign Affairs and Trade Mr. Péter Szijjártó stressed that due to flawed EU policies, Europe has become isolated from the global economy and is rapidly losing competitiveness.

While the EU treats China as a systemic rival, Hungary does not intend to compete with anyone.

Cooperation should be the priority, and the automotive industry is a prime example of the inevitability of global collaboration

– stressed the minister.

Hungary’s strategy of cooperation over confrontation is proving successful, and the sector is nearing key production capacity milestones: over 1 million cars and 2 million engines annually, and the world’s second-largest battery manufacturing capacity under development.

Moreover, the full automotive value chain is being brought to a higher level in Hungary. Announcements on R&D, corporate service centers, and HQ functions are expected soon, further enhancing the sector’s technological advanvement and value-added – Mr. Péter Szijjártó added.

Leading automotive executives against tariffs

Leading automotive executives voiced serious concerns on recent development regarding tariffs. Mr. Jens Bühler, Director of Mercedes-Benz’s Kecskemét plant, said the current tariff policies "make no sense" and harm everyone. He also highlighted recent and ongoing investments in Kecskemét, including connecting the two production facilities of the site and building one of Hungary’s largest solar power plants.

Mr. Michael Breme, Chairman of the Board at Audi Hungaria, stressed that

it is importan to resolve tariff issues through constructive dialogue.

He added that Audi’s Győr site remains strong thanks to its three pillars – vehicle production, engine production, and business services for the VW Group – and HIPA's support plays a key role in its flexibility and efficiency.

Mr. Hans-Peter Kemser, Head of BMW’s new Debrecen plant, stated that the coming period will be decisive in determining which companies remain on the market and which enter it successfully. With the series production of an excellent product launching in September at the new Debrecen factory, BMW is well positioned in this crucial phase.

Ms. Olívia Mesics, Head of Stellantis’ Opel plant in Szentgotthárd, said the uncertainty around the electric transition also creates room for traditional technologies. Their plant has expanded significantly and recently introduced a four-shift work model.

Mr. Masato Atsumi, CEO of Magyar Suzuki, noted that the Esztergom site is the company’s third largest globally, relying heavily on Hungarian suppliers. Besides manufacturing, it also serves as Suzuki’s European logistics HQ and provides IT services.

Ms. Sherry Li, Vice President of BYD – currently building its first European plant in Szeged – emphasized that the company collaborates with over 400 European suppliers, including industry giants such as Bosch and Continental. However, the Chinese investor is also in talks with potential Hungarian suppliers and aims to expand partnerships with local universities.

Automotive industry in a rollercoaster

Mr. András Kadocsa, partner at McKinsey & Company compared the sector’s situation to that of a person sitting in a rollercoaster, while reminding that globally, the automotive industry employs more people than Hungary’s population and spends USD 60 billion annually on R&D. Half of global automotive production now occurs outside Europe, and China and Europe each hold a 24% share, with China dominating in EVs.

Incentive system in the service of innovation

HIPA Deputy CEO Dr. Rita Szép-Tüske highlighted that Hungary’s investment incentive system had to be restructured to maintain economic resilience and attract future-proof technologies and industries. The aim is to deepen integration of OEMs into the domestic economy, attract R&D activities, and expand cooperation with Hungarian universities.

HIPA now offers new grant schemes for companies establishing R&D centers employing at least 50 people. To qualify, applicants must create at least 10 new R&D jobs and establish cooperation with a Hungarian higher education institution. A new optional criterion encourages companies to source 30% of inputs from suppliers within 100 km.

Geographically, the focus will now shift to southern Hungary, where available capacities remain. In these areas, the threshold for investment subsidies has been lowered from EUR 3 million to EUR 2 million – Dr. Rita Szép-Tüske added.