Economy minister: Hungary has become a major motor vehicle manufacturing hub in Europe

Motor vehicle manufacturing is playing a key role within the Hungarian economy, and thanks to the performance of the more than 700 enterprises active in the sector the volume of output soared by more than 17 percent over the past one year, Minister for National Economy Mihály Varga said at a conference organized as part of Automotive Hungary, a car industry exhibition event.

As the Minister stressed, the Government wants to see rising productivity within the domestic motor vehicle sector, and it is only possible if the number of Hungarian suppliers increases and their applied technologies improve.

In the opinion of Mihály Varga, it is realistic to see, even in the medium term, a higher share of high added value products by Hungarian enterprises and more R&D activities instead of simple contract work. To this end, the Supplier Development Action Plan aims, among others, to boost production capacities and increase the variety of goods produced, bolster innovation, further develop the dual education system and foster international inter-industry relations, the Minister pointed out.

Speaking of the performance of the Hungarian motor vehicle manufacturing sector, Mihály Varga said that following an above-20 percent output increase in the year 2014, this industry posted growth of 17.2 percent last year – more than double the figure of 2010.

Car industry enterprises employ more than 144 thousand people and create HUF 800bn in product value in Hungary. These figures have turned Hungary into a motor vehicle manufacturing centre in Europe, the Minister pointed out.

In coming decades, the sector is expected to undergo a fundamental paradigm shift, driven by digitalization, e-mobility and Industry 4.0 technologies. The Hungarian Government has taken pro-active measures and – through the Jedlik Ányos Plan and various incentives – it is promoting infrastructure development, the purchasing and usage of electric vehicles and the development of self-driving vehicles, he stated.

Photo: Ministry for National Economy

Source: Ministry for National Economy