electric car

Hungary’s new car registrations soar 49% by year-end

electric car ev sales

The number of new passenger car registrations in Hungary rose 48.7pc year-on-year to 11,879 in December, data compiled by the European Automobile Manufacturers’ Association (ACEA) show.

Hybrid electric and plug-in hybrid vehicles accounted for 57pc of sales, cars with petrol engines made up 26pc and vehicles with diesel engines 10pc. Fully-electric vehicles accounted for 6pc of sales. Sales of battery electric vehicles jumped 77.6pc to 753 during the period. For the full calendar year, new car registrations in Hungary rose 12.9pc to 121,611.

In a separate statement, the Energy Ministry said registrations of new battery electric cars had climbed 47.7pc in Hungary in January-December, at the fourth fastest pace in the European Union after Malta, Czechia, and Cyprus. The number of battery electric vehicles on Hungarian roads climbed over 70,000 in 2024, it added. The ministry noted a combined HUF 60bn in funding had been earmarked to subsidise EV purchases by businesses and charging network upgrades.

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New Mercedes models built in Hungary may feature Chinese engine

This is how the Hungarian government explains the significant rise in fuel prices

The US Treasury Department has slapped tough sanctions on Russia’s oil export shadow shipping fleet and related ship insurance companies, according to the Ministry of National Economy.

Consequently, China and India, the world’s largest oil importers, have to source more crude oil from other sources, such as the Middle East, Africa, and the Americas. This further increases the price of raw materials and also raises transport costs. In addition, demand for oil, especially in Europe and the US, may increase further during the cold winter months. As a result, Brent oil prices have risen by almost 10 percent in the past month.

The Russian-Ukrainian war led to the shutdown of the Friendship oil pipeline in early January. It threatened the security of the Turkish Stream, which plays a key role in Hungary’s energy supply. It is, therefore, in Hungary’s vital interest that all parties concerned ensure the security and smooth operation of the transport route. The part of the US sanctions package, which has been intensifying in recent days and which has had a very negative impact on the Serbian Petroleum Industry Company (NIS), also plays a role in the rise in fuel prices in the region, as the restrictive measure reduces the amount of crude oil and fuel available.

In our country, around 20-30 percent of fuel is imported, so external market developments directly and immediately impact domestic supply and fuel prices. The government is doing everything in the interest of families and businesses to stabilize the price of petrol and diesel in Hungary as much as possible while ensuring the security of supply.

The government’s objective remains unchanged: to guarantee that domestic fuel prices remain below the average price in neighboring countries. Looking at the reference period, the average price of a liter of petrol in neighboring countries was HUF 637, compared to HUF 1 in Hungary. For diesel, the domestic price was one euro higher than the 654 forints per liter in neighboring countries. The latest figures published by the European Commission show that average Hungarian pump prices align with average fuel prices in neighboring countries. If this is breached, the government is ready to intervene with all its means.

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Historic deal: Szeged in Hungary sells land to Chinese BYD for nearly EUR 30 million

Hungarian FM Szijjártó announces major Chinese investment

China’s automotive company Xinzhi is creating almost 900 jobs by investing HUF 50bn in a new plant it is building in Hatvan, east of the capital, Minister of Foreign Affairs and Trade Péter Szijjártó said on Monday.

Szijjártó talks about strengthening Hungary’s position

Szijjártó said this investment further strengthens Hungary’s position in the global market for transitioning to EVs. He said Xinzhi is a market leader in the production of one of the most important basic units of electric motors. The minister said the company is also bringing serious research and development activities to Hungary, in addition to production, and will be hiring 30 highly trained engineers.

“The electric car industry is still in the early stages of its development, so R+D plays a really big role now,” the minister said noting that the R+D work of the company will be of particularly high added value.

Szijjártó said Europe’s economic competitiveness and security have deteriorated significantly in recent years, and the only way to stop this economic decline is if the continent strengthens its role in the electric automotive transition and does not hand over this opportunity to others. “Hungary is at the forefront of this process, it is a stronghold and leader in global automotive renewal,” he added.

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Electric surge: Hungary’s electric vehicle count climbs to 68,000, could hit 120,000 by 2026

The number of fully electric vehicles in Hungary has risen to 68,000, the Energy Ministry said in a post on social media on Wednesday.

So far this year, around 20,000 BEVs have been registered in Hungary, the ministry said.

The number of BEVs could reach 120,000 by 2026, it added.

Hungary’s government has earmarked HUF 60bn for programmes promoting electromobility, including incentives for BEV purchases and expanding charging infrastructure.

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Featured image: depositphotos.com

PM Orbán calls for climate policy ‘guided by common sense’

Climate policy should be guided by common sense, rather than ideology, alarmism or panic, Prime Minister Viktor Orbán said in Baku on Tuesday, addressing COP29, the annual UN conference on climate change.

PM Orbán talks about climate policy

Speaking among more than 40 heads of state and government, Orbán thanked Azeri President Ilham Aliyev for hosting the event. Azerbaijan is a key partner of Europe in reaching its climate goals, and an ideal place to hold the conference, he said.

PM Orbán calls for climate policy
MTI/Azertac

Orbán noted that Hungary held summits of the European Political Community and the European Council last week, where EU leaders adopted a declaration on competitiveness that will shape the EU’s approach to climate issues.

“Our mission is to make Europe more competitive, and we approach climate protection with this vision in our mind,” Orbán said. Hungary is proud to have improved its economic performance while cutting emissions in recent years, he said.

“We cannot sacrifice our industry or our agriculture in this process. We must continue advancing the green transition while also maintaining our use of natural gas, oil and nuclear energy. The price of climate change should not be paid by our farmers, the backbone of our economy and society,” the Hungarian PM said. “We cannot impose unrealistic quotas or burdensome rules on farmers and companies, but should offer practical support for them.”

Green transition and the fight against climate change should be conducted in cooperation with the business community, rather than opposed to it, Orbán said. “We need clear financial guarantees and significant investment, large companies must contribute their fair share to climate protection.”

Regarding Hungary’s achievements, Orbán said the country was vying for an important role in the development of electric vehicles and electricity storage. Hungary is further investing in its already robust nuclear industry, increasing it to meet 70 percent of the country’s electricity demand, he said.

“Geographically, we play a key role in energy transit between East and West,” the Hungarian PM said. Meanwhile, Hungary boasts the lowest utility prices for households in Europe and it has also posted one of the largest increases in the use of green energy, he added.

Hungary is also a leader of economically sustainable climate protection, ranking fourth among EU countries in reducing carbon emissions for unit of energy produced, he said.

Looking ahead, the country aims to reduce emissions by 50 percent by 2030, Orbán said.

“I firmly believe that by working together, we can balance ambition with pragmatism, establishing Europe as a global leader in climate action, in compromise with the prosperity of our agriculture and industry,” Orbán said.

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New Mercedes models built in Hungary may feature Chinese engine

mercedes cla kecskemét

Until now, many people believed that although China would overtake Europe in electric drive, the classic car manufacturers were unbeatable in conventional engines. Well, this seems to be becoming less and less the case, and it can be disproved with a Mercedes made in Hungary, for example.

According to CarNewsChina, the third generation of the soon-to-be-renewed Mercedes-Benz CLA model will bring significant changes to its engine bay. A 2.0-litre turbocharged four-cylinder unit jointly developed by one of Mercedes’ major investors, Geely of China, and Horse Powertrain Limited will be fitted.

The engine, which was the result of a 2024 Geely-Renault collaboration, will offer 250bhp of power and 360Nm of maximum torque and looks set to be used in Mercedes cars.

Other Chinese technologies have also been used in the development of the CLA. Mercedes is working with local company Momenta to integrate intelligent driving solutions into the model, including urban driving functions. The Momenta startup was founded in 2016, and Mercedes-Benz was an early investor.

read also: Mercedes-Benz celebrates 2 millionth car produced at Kecskemét plant in Hungary

The CLA will be available with a conventional powertrain and a fully electric version. The electric CLA version will feature a 175 kW rear electric motor and an 89.6 kWh battery pack, providing a range of 750 km according to the Chinese WLTC standard. Built on an all-new platform, the Mercedes model has an 800 V architecture that allows for high-speed charging: it can generate enough power for up to 400 km in just 15 minutes.

The new model, which will also be produced at the Kecskemét plant, will premiere in Hungary in 2025. The mild hybrid version is likely to go on sale in 2026, further expanding the Mercedes-Benz range.

read also: First CUPRA Terramar rolls of Audi Hungaria line

Mercedes-Benz celebrates 2 millionth car produced at Kecskemét plant in Hungary

Mercedes-Benz has turned out the 2 millionth car at its base in Kecskemét (C Hungary), the local unit of the German carmaker said on Thursday.

The milestone was reached when a fully electric EQB model was rolled off the production line.

In addition to the EQB, the base produces A-Class, CLA Coupe and Shooting Brake models. Last year, over 174,000 were made at the base.

Jorg Burzer, Mercedes-Benz Group board member for production, acknowledged the efforts of workers at the plant to ensure “2 million satisfied customers”.

Mercedes-Benz Manufacturing Hungary managing director Jens Buhler said an expansion at the plant would ensure it remained a “reliable partner” for car buyers in future, too.

Production of compact models in Kecskemét started in 2021.

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Historic deal: Szeged in Hungary sells land to Chinese BYD for nearly EUR 30 million

Szeged has handed over the second parcel of land for the construction of Chinese EV maker BYD’s plant, Mayor László Botka said at a municipal council meeting on Friday.

New BYD factory in Szeged

Botka said that the 161-hectare parcel was handed over at the start of October after it had been cleared of old munitions and an archaeological survey had been completed. The electricity grid at the site is being replaced and expanded, he added. One more parcel of land, with an area of 15 hectares, will be handed over for the BYD plant by year-end, he said.

BYD will pay for the land, and the local council will use the proceeds from the sale to repay state support used to acquire the parcels and develop the area, Deputy Mayor Tamás Kovács said. According to 24.hu, the price of the land is HUF 11 billion 888 million (EUR 29,710,000). BYD has announced plans to spend several billion euros to build its first plant in Europe in Szeged. The factory will have the capacity to turn out 300,000 vehicles a year.

Visual plan of how the BYD factory in Szeged will look:

Szijjártó: Restrictions on cooperation between European car makers, Asian suppliers harmful

Any measure that threatens the electromobility strategy of European car makers and restricts cooperation with Asian suppliers would have a negative impact on the continent’s economy, Minister of Foreign Affairs and Trade Péter Szijjártó said at an informal meeting of the Foreign Affairs Council in Trade Formation in Budapest on Friday, his ministry said in a statement.

In a speech opening the meeting, Szijjártó said the global economy was undergoing fundamental changes, in part due to the European Union’s decision to make the switch to electromobility in light of road transport’s share of global emissions. That decision “completely changed” the structure and nature of economic and trade ties between the EU and China, he added.

Szijjártó said China and Chinese companies were “indispensable” to the supply chain of the green automotive industry. He welcomed big European car makers’ adaptation to the situation, pointing to their development of competitive electric vehicles, but said they had failed to keep in step with Asian, mainly Chinese, battery makers. He warned that any measure restricting cooperation between Western companies and their Asian suppliers threatened the adoption of car makers’ strategy in the new era and that would weigh on the entire European economy.

He noted that an EU measure introducing punitive tariffs on Chinese EVs had been supported by just ten member states and opposed by five, showing a lack of consensus. He said it was worth weighing the impact of the measure on a country with which bilateral trade with the EU reached EUR 740bn last year. He added that Beijing already had retaliatory measures in its sights. He pointed to Hungary, home to manufacturing bases of all three premium German car brands and plants of five of the ten biggest battery makers in the world, as an example of the mutual benefits yielded by industrial cooperation between East and West.

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Budapest tests Mercedes-Benz eCitaro fuel cell bus, you can try it for free

BKV is testing Mercedes-Benz eCitaro fuel cell bus, powered by a hydrogen fuel cell, Budapest’s public transport company said on Monday.

Mercedes-Benz eCitaro fuel cell bus

The model differs from other European manufacturers’ hydrogen-powered models in that the fuel cell version of the eCitaro model is still essentially an electric bus, meaning that the vehicle’s plug-in-only batteries need to be charged before the start of a shift, just like its pure electric counterparts. The 60 kW Toyota fuel cell stack in the bus, which always operates at 20 kW without overloading and in favorable operating conditions, is only a range-extender, i.e., the energy it produces through electrolysis is used to charge the energy storage batteries. The hydrogen gas is, therefore, used here to extend the range rather than as a primary energy carrier.

Budapest tests Mercedes-Benz eCitaro fuel cell bus

BKV will test the Mercedes-Benz eCitaro fuel cell articulated bus, supplied by local importer ITE Bus and Truck, from October 8 to 16. Passengers may ride the bus on the 8E route free of charge.

The Hungarian Transport Federation also supports the test.

As we wrote a few days ago, the Budapest Public Transport Centre (BKK) has signed a 12-year contract with ArrivaBus to install 70 new electric buses by BYD. Details are HERE.

Also we wrote today the number of battery electric cars in Hungary climbs over 60,000.

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Number of battery electric cars in Hungary climbs over 60,000

The number of fully electric cars in Hungary rose over 60,000 in September, the Energy Ministry said in a post on social media on Monday.

The ministry said the number of battery-electric vehicles in Hungary, including electric trucks and buses, stood close to 65,000.

Alone in September, 2,072 BEVs were registered in Hungary.

Hungary’s government has earmarked HUF 60bn (EUR 149.26) for programs promoting electromobility, including incentives for BEV purchases and the construction of charging infrastructure.

As we wrote a few days earlier, the Budapest Public Transport Centre (BKK) has signed 12-year contracts with ArrivaBus to put 70 new electric buses by BYD into service from spring 2026, details HERE.

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Orbán: Chinese electric car tariffs a blow to European economy

The European Commission is set to impose tariffs on Chinese electric cars, a huge blow for the European economy and for the automotive industry in Germany, Prime Minister Viktor Orbán said on “X” (formerly Twitter), on Saturday.

“Germany and European industry can no longer convince the Commission to be reasonable. But then, who can?” Orbán posted.

The European Commission said on Friday that its proposal to impose definitive countervailing duties on imports of battery electric cars from China had obtained the necessary support from EU member states for the adoption of tariffs.

The EC also said that the EU and China would continue to “work hard to explore an alternative solution that would have to be fully WTO-compatible”.

Five member states, including Hungary and Germany, voted against the proposal, while twelve, among them Spain and Sweden, abstained.

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Important milestone in Budapest’s public transport: new electric buses to come

New electric buses come to Budapest

The Budapest Public Transport Centre (BKK) has signed 12-year contracts with ArrivaBus to put 70 new electric buses by BYD into service from spring 2026.

70 + 30 new electric buses will carry passengers in Budapest

ArrivaBus will be in charge of the operation and maintenance of the buses, employing drivers and providing charging infrastructure, the Hungarian News Agency reported.

According to the Budapest Transport Centre, the environment-friendly vehicles will be modern, low-floor, purely electric, and air-conditioned. Based on the plans, they will carry passengers in busy downtown lines.

New electric buses come to Budapest
Photo: FB/BKK

Out of the 70 buses, 50 will be solo, while 20 will be articulated. ArrivaBus, which won the relevant tender in October and December, will provide BYD buses. They hope serving downtown routes with purely electric vehicles will help improve the capital’s air quality. Furthermore, the aim is to help meet the city’s climate goals and make Budapest more resistant to the consequences of climate change.

Interestingly, ArrivaBus wrote in their Facebook post that they will supply Budapest with 82 electric buses and open a new era in the capital’s public transport system. They added that Budapest will be the first European capital to run buses with the so-called “Blade Battery Technology”. ArrivaBus wrote that passengers could travel on the new buses from early 2026.

The goal is zero-emission

Budapest’s local government and the BKK are determined to operate sustainable public transport in Budapest.

ArrivaBus has been supplying 240 buses for Budapest’s public transport fleet since 2015. Based on the current contract, ordering 30% more buses is an option for Budapest. If the capital does so, 10% of its bus fleet will be purely electric.

Budapest prefers zero-emission vehicles both in the trolley and the bus segments. That is how the capital would meet the European Commission’s Green Deal goals, envisioning a carbon-neutral European Union by 2050.

As a result, they plan to acquire 20 more purely electric midi buses, and the relevant public procurement process is already in progress.

Thanks to the gradual development of Budapest’s bus fleet, passengers can only meet low-floor buses in the capital. However, the number of buses older than 18 is still almost 200.

New trams and trolley buses

In the last few years, 51 low-floor, air-conditioned CAF trams arrived with the help of EU funds, and the BKK is already working on a new tender to acquire 100 more modern trams. Provided they have the financial background, BKK can welcome 160 modern, environment-friendly, low-floor trolley buses.

The first new CAF tram arrived in Budapest yesterday:

Investments set to boost Alstom bogie frame capacity in Hungary

A HUF 6bn investment programme that is winding down at French rolling stock maker Alstom’s bogie frame plant in Mátranovák (Northeast Hungary) will boost capacity there by 40pc, Gaspar Balazs, in charge of the company’s local operations, said at an industry conference.

In a few years, the Mátranovák plant could account for one-third of Alstom’s bogie frame capacity worldwide, Balazs said in a statement issued by the company on Thursday.

This year, the base will turn out 1,600 bogie frames.

Read also:

  • Best and worst metro systems of Europe ranked, Budapest takes a surprising spot – read more HERE
  • Will crossing Budapest by tram without transfers no longer be a dream? – details in THIS article

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Hungarian business develops AI-driven invoicing system

Kontron Hungary has developed an automated invoice processing and data analysis solution that uses artificial intelligence (AI), the IT company told MTI.

The project was supported by HUF 355 million (EUR 890 thousand) from the National R+D+I Fund. Kontron Hungary had a net revenue of HUF 40.4 billion (EUR 101 million) last year, public records show.

Fidesz MEP urges rethink of punitive tariffs on Chinese EVs

Enikő Győri, an MEP of governing Fidesz and a member of the Patriots for Europe group, pressed the European Commission to review temporary punitive tariffs on imports of electric vehicles from China in light of member states’ doubts that the measure serves the interests of Europe in a statement issued on Tuesday.

Győri said the EU’s automotive industry, which depended on parts from China, had protested the punitive tariffs. She added that a trade war with China would put the EU’s supply chains at risk and could further damage local production and competitiveness.

Győri said the measure served the interests of neither car makers nor European consumers, who would have to pay more for their EVs. The step doesn’t advance the green transition either, she added.

“I hope that this isn’t about a superpower outside of the European Union trying to force the EU into a trade war,” she said.

Hungary’s task, as it holds the rotating presidency of the Council of the EU, is to outline the benefits to competitiveness of adopting a policy of economic neutrality, “free of ideology”, Győri said.

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Featured image: illustration, depositphotos.com

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BYD to cooperate with Hungarian education institutions

Chinese electric vehicle maker BYD aims to establish cooperation with education institutions in Szeged (SE Hungary), where it is building its first plant in Europe, the company’s Hungarian PR agent said on Friday.

A delegation in charge of training and HR at BYD recently visited Hungary and met with Culture and Innovation Minister Balázs Hankó and Hungarian Investment Promotion Agency (HIPA) head István Joó. The delegation also met with the heads of higher education and vocational training institutions in Szeged.

Jerry Xun, the company’s deputy CEO for HR, said he expected Hungarian expertise and innovative approaches to play an “outstanding” role in its activities in Hungary. The Chinese carmaker’s base in Szeged will turn out as many as 300,000 vehicles a year.

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Unveiled: How Hungary plans to spend the Chinese loan funds

green energy electric vehicle chinese loan

Hungary is set to use part of its EUR 1 billion Chinese loan to fund the installation of electric vehicle charging stations in rural areas. This move comes as the government redirects funds due to delays and uncertainties with EU recovery grants.

According to Portfolio, the Chinese loan will be allocated to this project initially planned for EU funding. The government’s decision also involves using the loan for other related initiatives, reflecting a strategic shift in funding approaches.

green energy electric vehicle chinese loan
Photo: Facebook/Energiaügyi Minisztérium

Initially, this project was planned to be funded by the EU’s recovery loan framework through an upcoming HUF 28 billion (EUR 70.9 million) grant. However, with EU funds either delayed or uncertain, the government has decided to utilize the Chinese loan for this initiative. It appears that not only will part of the HUF 28 billion grant be covered by the Chinese loan, but also a separate HUF 30 billion (EUR 76 million) EU grant for electric vehicle purchases.

Since Daily News Hungary first reported in late July about Hungary’s quiet acquisition of a EUR 1 billion loan from Chinese banks, there has been speculation about how this significant funding would be used. The Debt Management Agency’s (Államadósság Kezelő Központ) database lists only broad categories for the loan’s purpose: “Financing the central budget’s expenditures in high technology, infrastructure development, transport infrastructure, and energy sectors.”

First reports about the possible usage of the loan

National Economy Minister Márton Nagy stated the following day that this loan “will be integrated into state financing, primarily for infrastructure development.” Meanwhile, Finance Minister Mihály Varga confirmed last week that “the Chinese loan is being used for energy efficiency investments,” although the Chinese partners have not agreed to declassify the loan agreement.

Portfolio now reports that at least HUF 28 billion from the nearly HUF 400 billion Chinese loan will be allocated to expanding electric vehicle charging stations in rural areas, a project initially planned to be funded by the EU’s recovery program.

The “Installation of Electric Vehicle Charging Stations” tender, coded RRF-REP-10.14.1-24, was socially consulted in early July and was expected to open in August, but it has not yet begun. Businesses with electric charging station operator licenses will be able to apply, committing to establishing at least one charging station in one of the 45 designated underserved districts.

green energy electric vehicle chinese loan
Photo: Facebook/Energiaügyi Minisztérium

Government substitutes EU recovery funds with Chinese loans

It is highly likely that the government intends to use the Chinese loan for both the HUF 28 billion EU grant and the ongoing HUF 30 billion electric vehicle purchase grant. This is supported by two factors.

First, when the government added the electric vehicle charging tender to the REPowerEU loan project list last August, it also added the electric vehicle purchase grant. A government decree allowed for these projects to be financed by the budget if EU funds were not received or were delayed, paving the way for using Hungarian and potentially Chinese funding.

Second, on 2 July, the Ministry of Energy highlighted the EU tender for expanding the charging network while reminding that the HUF 30 billion vehicle purchase program had already started in February, also under the REPowerEU framework.

If this report proves accurate, it will be the first tangible sign that the Hungarian government is substituting EU recovery funds with Chinese loans due to difficulties accessing EU funds.

Minister Márton Nagy previously indicated that “we are entitled to this money, but the EU is blocking us for political reasons.” He added, “We continue to fight for the funds, but it seems we are encountering very tough obstacles.”

EU recovery funds still out of reach

The government has yet to meet several key milestones for accessing EU recovery funds, and recent updates suggest a lack of progress or intention to meet these requirements, making access to these funds uncertain. However, the EUR 0.92 billion advance from the REPowerEU chapter may need to be repaid if milestones are not met by 2026. Consequently, it is notable that the government has sought a EUR 1 billion Chinese loan with objectives closely mirroring those of the EU’s recovery program.

The government’s choice to use Chinese funding for the tenders, despite challenges with EU funds, can be explained by several factors:

  • According to the Ministry of Interior, the number of green license plate vehicles in Hungary has surpassed 100,000, with over 60,000 being purely electric. The HUF 30 billion vehicle purchase program and other initiatives suggest that developing charging infrastructure, along with significant upgrades to the electrical network, is crucial.
  • The transportation sector’s greenhouse gas emissions are the second highest in Hungary after the energy sector, accounting for about 20%. Following a rise in emissions over recent years, last year saw the first significant decrease, over 7%. Expanding the charging network and electric vehicle fleet could further drive this reduction in the coming years.

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Number of battery-only electric vehicles skyrockets in Hungary

The number of battery-only electric vehicles registered in Hungary rose to close to 61,000 in July, the energy ministry said on social media on Monday.

Number of electric vehicles skyrockets in Hungary

The overall number of vehicles with green plates including hybrids exceeded 100,000 in June, the ministry said.

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Featured image: depositphotos.com

Important: Hungary to revoke green number plates from hybrid vehicles

hybrid vehicle electric car green licence plate hungary

Hungary is revamping the incentive system associated with green number plates. From 1 September, only fully electric and zero-emission vehicles will be eligible for green number plates. Owners of plug-in hybrid vehicles and those classified in the extended-range environmental category will need to replace their green plates by 30 November 2026.

hybrid vehicle electric car green licence plate hungary
The first car to receive the green number plate, the BMW i3 electric car in Budapest on 13 October 2015. Photo: MTI/Marjai János

Since January 2016, plug-in hybrid vehicles (PHEVs) have enjoyed significant incentives on par with zero-emission vehicles such as fully electric and hydrogen-powered cars. However, the past eight years have yielded mixed results regarding the environmental value of this technology and the vehicles using it, iho.hu reports.

Hybrid vehicles more polluting than initially expected

The European Court of Auditors has monitored the general operational practices and related emissions of plug-in hybrids on the roads in recent years. They found that the real-world emissions of these hybrids are 3 to 5 times higher than those measured in laboratory conditions. This discrepancy is attributed to the more frequent and intensive use of internal combustion engines in these vehicles than anticipated.

Additionally, the past years have seen a rise in vehicles with larger internal combustion engines than the average petrol or diesel cars, which, combined with electric propulsion, qualify for the same incentives as zero-emission vehicles. However, these are often more polluting than typical fossil fuel-powered vehicles.

Given the higher environmental impact of plug-in hybrid technology compared to zero-emission vehicles and the fact that it allows luxury SUVs to benefit from green car incentives, the Ministry of Construction and Transport (ÉKM) has deemed it unjustifiable to maintain the same level of incentives for both zero-emission and plug-in hybrid vehicles.

Hybrid vehicles to be stripped of their green plates

According to a government decree, from 1 September 2024, only fully electric and zero-emission vehicles will be eligible for green number plates upon their first domestic registration, iho.hu writes. Owners of less environmentally friendly vehicles—classified as 5P (plug-in) and 5N (extended range) hybrid electric vehicles—must initiate the replacement of their green plates with white ones by 30 November 2026.

Consequently, the tax incentives associated with green number plates are also under review, marking the end of the era for luxury SUVs with green plates.

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Orbán envisions a war between China and the EU

PM Orbán Xi Jinping in Beijing chinese president chinese ambassador szijjártó china hungarian

Prime Minister Viktor Orbán has criticised the European Union’s tariffs on China’s biggest electric vehicle manufacturers as “bad and ill-thought-out”, warning that the measure could trigger a trade war.

Trade war between China and the EU?

Orbán said the “biggest aim and the strongest hope” was that the tariffs would only be temporary and would be lifted after four months.

He said the European Commission had justified the introduction of the tariffs with the need to protect the interests of European manufacturers, adding, at the same time, that the leaders of the major carmakers he had spoken to ahead of the start of Hungary’s EU presidency had strongly opposed the measure.

Electric Vehicles Car
Photo: Unsplash / myenergi

“These kinds of bad and ill-thought-out decisions can push economic life towards a trade war”, the prime minister warned, saying this “decision by the bureaucrats” could trigger counter-measures from the East.

Hungary’s interests, he said, lay in averting a trade war, because “we make our living by being able to sell what we produce in Hungary all over the world”. “But if there’s going to be a trade war then we won’t be able to sell the products produced in Hungary, and this could eventually threaten jobs,” he added.

Official: EC’s temporary tariffs on Chinese electric cars bad for European customers

The European Commission is implementing temporary punitive tariffs on electric cars imported from China, a government commissioner noted on Facebook on Friday, adding that the decision was “certainly not good for European customers”.

István Joó, who is also the head of national investment promotion agency HIPA, said the tariffs hampered competition when it came to price and quality and would harm Europe’s car industry, especially German companies manufacturing in China. Further, the measure would hold back research and development as protectionism “does not help these processes”.

Moreover, economic ties between Europe and China would suffer, he said, insisting that the EC was acting willfully and its policy was not supported by the biggest automotive industry players.

“Hopefully the measure genuinely will be temporary,” Joó wrote.

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National economy minister: Hungary rejects brutal EU tariffs on Chinese electric vehicle makers

electric car electric vehicle

Hungary does not agree with a European Commission proposal to impose “brutal” tariffs on Chinese electric vehicle makers, “exaggerated protectionism is not the solution”, the national economy minister said in Budapest on Wednesday.

Brussels’ proposal on electric vehicle tariffs

The European Commission on Wednesday published a draft package on electric vehicles imported from China, including stiff tariffs between 17.4 and 38.1 percent imposed individually on various manufacturers, besides the 10 percent already paid by manufacturers.

According to a ministry statement, Nagy slammed the proposal as “doubly discriminative, against China and certain manufacturers… Such a tariff system causing extreme discrimination is almost unprecedented,” he said.

Rather than increasing protectionism, Hungary’s government would focus on cooperation and free competition, Nagy said. Rather than curbing competition through tariffs, the EU should bolster the global competitiveness of the European vehicle industry, he said. “There can be no strong EU without a strong competition,” he added.

Hungary is drafting a European action plan to speed up the spread of e-vehicles and to boost competition, to be presented to member states at the next meeting of the Competitiveness Council on July 8-9, he said.

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