Speaking at the event held at the headquarters of the Hungarian Investment Promotion Agency (HIPA), Péter Szijjártó highlighted that Hungary is home to three German premium car manufacturers and five of the ten largest battery manufacturers from the East.
Szijjártó pointed out that the Eastern and Western strongholds of the revolutionary automotive industry have converged in Hungary, making the country a key meeting point for Eastern and Western companies in the heart of Europe.
He cited the example of the large Chinese battery factory built in Debrecen, located next to a major German car factory. He also noted that one of the key factors in Mercedes' investment in Kecskemét was the construction of the Chinese battery factory in Hungary, which supplies batteries to the German company.
The minister criticised the EU’s punitive tariffs on the Chinese electric car industry, arguing that they are putting the European economy in a difficult position, isolating it, and undermining European competitiveness.
Szijjártó pointed out that the major players in the European car industry are vehemently opposing these tariffs, which were supported by only 10 out of 27 EU member states. He noted that the largest European car manufacturing country, Germany, voted against the tariffs, along with Hungary, Slovenia, Slovakia, and Malta.
He expressed hope that by the end of October, common sense would prevail among decision-makers in Brussels and that this “European economic suicide” could somehow be averted.
Szijjártó recalled that, starting from the middle of the next decade, only passenger cars and light commercial vehicles that do not emit carbon dioxide will be sold in Europe. He added that this would lead to a dramatic surge in investment in electric vehicles, with competition for these investments becoming fiercer and more intense than ever before. European countries will likely use both overt and subtle means to secure these opportunities. He emphasised that this transformation is particularly important for the Hungarian economy, as the automotive industry has become its dominant sector over the past decade.
Szijjártó noted that since 2014, the production value of Hungary’s automotive industry has quadrupled, reaching HUF 13,700 billion (approximately EUR 36 billion) last year. He added that Hungary became one of the world’s top 20 automotive exporters in 2018 and has maintained this position for the past six years.
Szijjártó stated that more than half a million cars were produced in Hungary last year. He added that if the three major ongoing investments—Mercedes’ Kecskemét plant, BMW’s Debrecen facility, and BYD’s Szeged project—are successfully completed, Hungary will reach an annual production of one million cars, a milestone achieved by only five countries in Europe.
The minister emphasised that BYD’s arrival in Hungary presents an unprecedented opportunity for the revolutionary transformation of the Hungarian supplier industry, with the momentum to shift the industry from conventional to electric drive. “We cannot set a more modest goal than to become one of the strongest strongholds of the European automotive industry in this new era—to be a regional manufacturing hub, a European test center, and a key player in the ecosystem surrounding electromobility (...) we offer the most competitive package in Europe,” Szijjártó said. He then outlined why it is beneficial for BYD to employ Hungarian suppliers, citing advantages such as the minimal geographical distance, the competitive edge of sourcing within the border, and the fact that Hungarian companies are not only local stars but also suppliers to international firms.
Szijjártó noted that in 2004, China’s share of global economic output was 9 percent, but today it stands at 19 percent, with the Chinese economy on an exponential growth trajectory. “It is in our interest to follow this path together with the Chinese,” he added.
The minister noted that Chinese confidence in Hungary is evident from the fact that, after 2020, China once again became Hungary’s largest source of investment in 2023. Chinese investments in Hungary have reached a volume of about 20 billion euros, making China’s economic impact on Hungary second only to that of Germany.
He urged BYD representatives to give as many Hungarian companies as possible the opportunity to collaborate. "Made in Szeged is already a reality, and we look forward to future opportunities for Made by Hungarians," the minister concluded.
István Joó, CEO of HIPA, added that 112 companies from BYD’s seven committees, all proven in their respective fields and with longstanding experience working with leading European car manufacturers, were presented at the forum. These companies represent a broad range of expertise in the automotive industry, from plastic injection moulding to metalworking and safety systems development.
BYD announced in 2023 that it will invest billions of euros to build its first European car plant in Szeged, with a production capacity of 300,000 cars per year.
