New KSH statistics: Battery production in Hungary practically collapsed

Output of Hungary’s industrial sector slipped 3.9pc in January, a detailed reading of data released by the Central Statistics Office (KSH) on Thursday shows.

According to the Hungarian News Agency, the detailed data show output of the automotive industry, Hungary’s biggest manufacturing sector, fell 3.0pc year-on-year in January. The segment accounted for 26pc of manufacturing output during the month. Output of the computer, electronics and optical equipment segment, accounting for 11pc of manufacturing, rose 15.4pc.

Output of the electrical equipment segment, which made up 8.5pc of manufacturing output, fell 29.5pc. Output of the food, drinks and tobacco segment, generating 13pc of the sector’s output, edged down 0.6pc.

Headline output dropped at the same pace when adjusted for the number of workdays. In a month-on-month comparison, output edged up a seasonally- and workday-adjusted 0.8pc.

Battery production collapsed

According to portfolio.hu, a Hungarian economy-focused media outlet, battery production struggles the most in the electrical equipment segment, and, practically, its volume is below the 2022-2023 capacity increase. Consequently, production is minimal compared to the existing capacities. According to the news outlet, the Hungarian battery production industry has only two hopes. One is that the European environment will get in better shape, but Trump’s measures contradict that. The second is that BMW, CATL, and BYD will start production, but Portfólió has no information on when that will happen due to the low European demand.

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