Hungary’s major multinationals expansion plans: 2025 as the year of factory openings

As Hungary and the European Union face mounting economic challenges, multinational corporations are increasingly eyeing Hungary as a strategic base for expansion. The country’s open economy and focus on attracting foreign direct investment (FDI) have positioned it as a key player in the global manufacturing and services landscape.

A shift in global trends

According to Növekedés, FDI growth has stagnated since the 2010s, influenced by economic turbulence, geopolitical tensions, and shifting industrial dynamics. Despite these challenges, Hungary’s government has effectively utilised investment incentives to attract large-scale projects. Emerging industries like electromobility and semiconductor production are at the forefront of Hungary’s investment priorities.

Major projects set to launch in 2025

Several high-profile multinationals investments will begin operations in Hungary by 2025, with substantial impacts expected on the country’s economy and workforce.

  • BYD in Szeged: Chinese electric vehicle giant BYD will open its first European factory in Szeged, capable of producing 300,000 vehicles annually. The factory, a multibillion-euro project, will commence production in late 2025, creating opportunities for Hungarian SMEs to integrate into the global electric vehicle supply chain.
  • BMW iFactory in Debrecen: Multinational automotive company BMW is investing over EUR 2 billion in its state-of-the-art Debrecen facility, focusing exclusively on electric vehicles with an annual capacity of 150,000 units. This facility, scheduled to launch in 2025, is expected to attract additional suppliers and bolster regional economic development.
  • CATL in Debrecen: Chinese battery manufacturer CATL is establishing its second European plant in Debrecen, with a EUR 7.34 billion investment. The factory will employ 2,000–3,000 people and have an annual production capacity of 40 GWh, potentially expanding to 100 GWh.
  • Sunwoda in Nyíregyháza: Another Chinese battery firm, Sunwoda, plans to begin operations in late 2025 with an initial investment of EUR 245 million, which could grow to EUR 1.5 billion.

Diversification beyond automotive

While automotive projects dominate, Hungary is also expanding its investment portfolio into other sectors. This diversification aims to increase economic resilience against global disruptions. The government’s connectivity strategy seeks to balance regional economic integration while fostering sustainable and crisis-resistant investments.

Conclusion

Hungary’s proactive approach to attracting FDI has positioned it as a hub for transformative industries, particularly electromobility and battery production. As these projects come online in 2025, they are set to redefine Hungary’s economic landscape and reinforce its role as a key player in Europe’s industrial future.

Read also:

One comment

  1. Excellent news!

    I notice SPAR is also still here, despite threatening to leave 50 times in the past couple years.

Leave a Reply

Your email address will not be published. Required fields are marked *