Hungary’s transport network has taken two significant steps forward, with a major tram extension in Budapest receiving European Union funding and the production of a new fleet of InterCity trains officially getting underway.

Transport and Investment Minister Dávid Vitézy announced both developments on Facebook, describing them as important milestones for the country’s public transport modernisation.

EU funding signed for Budapest tram extension

Vitézy confirmed that he has signed the HUF 32.2 billion (EUR 80 million) European Union funding agreement for the second phase of the Buda Interconnecting Tram Network project.

The investment will see a new tram line built between Szent Gellért Square and Budafoki Road via the Műegyetem Embankment, extending Budapest’s interconnected tram system further south.

“This will be one of the first transport development projects to begin thanks to the EU funds that have now become available again,” Vitézy wrote on Facebook.

Construction could begin this autumn

The extension has been under preparation for several years. Planning began in 2020 under the former Budapest Development Centre led by Vitézy, while disagreements between the city, the government and Budapest’s 11th District were eventually resolved.

After an initial procurement procedure was cancelled and relaunched, construction company Swietelsky won the contract earlier this year with a bid worth HUF 26.9 billion. According to the minister, utility relocation works are expected to begin this autumn, while large-scale construction along the full route could start in 2027.

The new tram line will run from Szent Gellért Square along the Danube, passing beneath both the Petőfi Bridge and the Rákóczi Bridge before reaching Budafoki Road via the Kopaszi Dam area.

The project is being managed by the Ministry of Transport and Investment in cooperation with the Budapest Transport Centre (BKK) and is scheduled for completion by 2029. Vitézy added that further transport investments, including railway developments across Hungary, are expected to follow.

Production starts on new InterCity trains

In a separate announcement, Vitézy said production has officially begun on 11 new InterCity electric multiple units for GYSEV, with the trains expected to enter passenger service by the summer of 2028.

The five-car, dual-voltage trains will be capable of speeds of up to 160 km/h and will operate on the Budapest–Sopron and Budapest–Szombathely routes. The procurement was originally launched in early 2022 and is being financed through a loan from the European Investment Bank (EIB).

First trains could arrive next year

According to Vitézy, the first four trainsets are already being assembled in Siedlce, Poland, while the painted bodyshells are being produced at Stadler’s factory in Szolnok, Hungary.

The first completed train is expected to arrive in Hungary by the end of this year to begin testing and certification. If approvals proceed as planned, some of the new trains could enter service during the second half of 2027, ahead of the full fleet’s delivery in 2028.

Modern comfort for passengers

The new InterCity trains will feature both first- and second-class seating, air-conditioned low-floor interiors, Wi-Fi, USB-C charging points, modern passenger information systems and dedicated bicycle spaces. The flexible interior layout will allow up to 18 bicycles to be carried during the summer season, while seat-back holders for tablets and smartphones will also be available.

Testing of the trains is due to begin in August 2026 in Romania, Czechia and Hungary simultaneously before the new fleet enters commercial operation.

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