Photo: AFP/ImagineChina
Dániel Kovács
08/11/2024 11:08
A decade ago, Hungary was still dominated by the big Western car manufacturers, but now the tables have turned. The leading news stories are about the gigantic investments of the big Chinese automotive groups. Hungary has become China's number one investment destination in Central Europe, and economic cooperation between the two countries is breaking records, thanks mainly to automotive investment. Their importance in the Central and Eastern European region is inestimable, as this is where the links between the automotive industries of the East and the West meet.
BYD, one of the world's largest manufacturers of electric vehicles and batteries, has invested heavily in Hungary. The company is building a new plant near Szeged, which will be its first large-scale factory in Europe. In addition, it is setting up a tens of billions of forints battery assembly plant in Fót. BYD's presence in Hungary is significant not only in car manufacturing but also in electric bus production.
CATL, the world's largest battery manufacturer, is building Europe's largest battery factory in Debrecen. The factory will mainly produce batteries for electric cars, including for the local BMW plant. The investment is worth 7.34 billion EUR.
Eve Power is also building a battery factory in Debrecen, creating more than a thousand new jobs. One of the main objectives of the investment is to supply the BMW plant with a new generation of batteries. China's Semcorp is building a plant in Debrecen to produce separator foils for lithium-ion batteries. The plant will be part of the regional battery ecosystem.
Zhejiang Shuanghuan Driveline has announced an investment in Jászfényszaru, where it will create 450 jobs and produce components for electric cars. The Chinese company manufactures gears and axles for a global customer base including Tesla, Volvo and ZF.
Besides BYD, other Chinese car manufacturers such as Nio and Great Wall Motor are also expanding in Hungary. Although details of these investments are scarce, their presence indicates that Hungary is increasingly becoming a strategic location for Chinese automotive activities in the European market.
In summary, in 2023 alone, another 3 billion EUR worth of Chinese automotive investment has been invested in Hungary, mainly in electric vehicles and battery production. These investments will contribute to the renewal of the European automotive industry, especially through cooperation with German car manufacturers.
The author is an economic journalist