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HUNGARY OPENING DOORS for YOUR INVESTMENT Automotive Industry in Hungary 5 AUTOMOTIVE INDUSTRY IN HUNGARY OPENING DOORS FOR YOUR INVESTMENT Automotive Industry in Hungary 5 6 ABOUT HUNGARY Published by the Hungarian Investment Promotion Agency, HIPA All rights reserved © HIPA, 2017 www.hipa.hu 14 AUTOMOTIVE INDUSTRY 30 LABOUR FORCE 36 INNOVATION 40 SUPPLIER NETWORK HUNGARIAN INVESTMENT 44 PROMOTION AGENCY (HIPA) Automotive Industry in Hungary 7 ABOUT HUNGARY MAIN FIGURES CURRENCY INFLATION FORM OF GDP (PPS) GOVERMENT FORINT € 194,248 0.4% PARLIAMENTARY (HUF) MILLION (2016, HCSO*) REPUBLIC (2015) AREA TIME ZONE 93,022 km2 GMT + 1 HOUR UNEMPLOYMENT RATE 5.1 % (2016, HCSO) HUNGARY OTHER MAJOR CITIES POPULATION CAPITAL BUDAPEST Debrecen (203,059) Szeged (162,621) 9,830,485 1,759,407 (as of January 2016) (as of January 2016) Miskolc (159,101) Pécs (145,347) Győr (129,568) 70% 62% CLIMATE RISK OF NATURAL TEMPERATE DISASTERS 51% (similar to the rest of VERY LOW the continental zone) 40% 39% 30% Inward FDI stock in 2015 MEMBERSHIP IN INTERNATIONAL (percentage of GDP) ORGANISATIONS EU, UN, OECD, WTO, NATO, IMF, EC EU member: since 2004 HUNGARY CZECH SLOVAKIA POLAND ROMANIA SLOVENIA Source: wiiw FDI (Source: *HCSO REPUBLIC Database = Hungarian Central Statistical Office) Automotive Industry in Hungary 9 ABOUT HUNGARY LOGISTICS & INFRASTRUCTURE 3 TEN-T CORE CORRIDORS CROSSING HUNGARY AT THE CROSSROADS OF EXTENSIVE HIGHLY DEVELOPED MEDITERRANEAN * ORIENT-EAST/MED * RHINE-DANUBE THREE MAIN EUROPEAN ROAD & RAILWAY LOGISTICS & TRANSPORTATION TRANSPORTATION TELECOMMUNICATIONS CORRIDORS NETWORK INFRASTRUCTURE COMMERCIAL CORRIDORS & INFRASTRUCTURE “The initial evaluation of ten countries resulted in a short list of three countries, in which we analyzed several regions and cities. Finally, we made a decision for Hungary and more specifically in favor of Miskolc. Hungary was chosen as our investment location among other reasons due to the availability of a developed infra- structure, logistics conditions, strong industrial traditions and background, as well as due to the availability of skilled workforce and an investor-friendly environment. Also, the MOTORWAYS IN HUNGARY M5: Budapest – SRB LEGEND renowned technical university of Miskolc as well as the avail- M1: Budapest – AUT M6: Budapest – Pécs existing European Commission, REGULATION No (EU) 1316/2013 O.J. L348 - 20/12/2013 ability of technical and vocational schools played a crucial M3: Budapest – RO/UKR/SK M7: Budapest – SLO planned role while considering our long term plans and strategy.” Kersten Bachmann, Director, EMEA Operations Airbag TAKATA Safety Systems Hungary Ltd. 11 ...has introduced a new ABOUT HUNGARY incentive scheme BUSINESS ENVIRONMENT supporting tech- intensive investments. ...was the first to ...has introduced its unique implement a Digital economic development Nation Development plan based on Industry 4.0 Program in the CEE requirements. IN ORDER TO region. IMPROVE THE BUSINESS CLIMATE THE HUNGARIAN …has created the most GOVERNMENT... competitive CIT in the EU with 9 % flat rate. INVESTMENTS IN FOCUS INVESTMENTS ...has signed more than 70 strategic partnership agreements giving companies fast access to the Government. ...further improved the practice-based dual ...has modified its ...is committed to education system built taxation and incentive further reduce taxes on on industry needs. system related to R&D employment. activities to make Hungary the innovation hub of CEE. Automotive Industry in Hungary 13 ABOUT HUNGARY EXPLORE THE COUNTRYSIDE Hungary’s diverse countryside offers a wide QUALITY OF LIFE range of outdoor activities: 11,000 kilometres of hiking routes; more than 2,500 kilometres of cycle paths; 22 golf courses; ten national parks; and many protected nature reserves for those in love with fresh air. The protected Puszta- region, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort. BUDAPEST IS THE ARIA HOTEL 2. BUDAPEST BEST CITY #1 ON EARTH HOTEL IN THE WORLD (Condé Nast Traveler, BY TRIPADVISOR 2017 2015) Travelers' Choice Award EXPATS LIKE HUNGARY Budapest is a city full of surprises and wonders, with its lively centre, pretty parks, majestic river, tall church spires, and lavish spas. One of the most exciting cities in the world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is INTERNATIONAL SCHOOLS the city where being bored is not an option. Expatriates looking to stick with the curricula of their home countries can choose from According to TripAdvisor, Budapest is offer- a range of private international schools for their ing the best price-value ratio in the world. children. There are also many English, German or According to Condé Nast Traveler readers, French public and private pre-schools for children Budapest is the second best city on earth. aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too. Automotive Industry in Hungary 15 AUTOMOTIVE INDUSTRY HISTORY long with many discoveries and THE CENTURIES-OLD HISTORY inventions, Hungarians have contrib- OF THE AUTOMOTIVE INDUSTRY Auted to the spread of the automobile across the world. IN HUNGARY 15th century 1893 1905 1913 ne of the earliest examples of this was ános Csonka and Donát Bánki constructed rganised automobile manufacturing has ózsef Galamb with others together framed Oduring the reign of King Matthias Cor- Jthe first petrol vaporizer, (carburet- Obeen present in Hungary since 1905, Jthe concept of the famous Model-T Ford. vinus in the 15th century, with the wheel- tor), which they patented in February 1893. when János Csonka, commissioned by the His intention was to create a car that would wrights of Kocs in Komárom county and their János Csonka was the first to utilise the Hungarian Royal Post created his mail trans- be cheap and simple to manufacture. In this construction of a horse-drawn vehicle with use of aluminium in the manufacturing of port car in the training centre of Budapest model he applied technical innovations, such steel-spring suspension. This “cart of Kocs” engines, he also developed controlled inlet University of Technology. as the planetary gear and the removable as the Hungarians called it (kocsi szekér) soon valves and high voltage magneto ignition for cylinder head. In 1913, with his lead, the Ford became popular all over Europe and lent its petrol engines. Factory switched to serial production on its name to the English word “coach”. production lines. This resulted in the Model-T becoming the world’s first mass produced affordable car. During its 20 year production, over 155 million units were manufactured. Automotive Industry in Hungary 17 AUTOMOTIVE INDUSTRY HISTORY THE CENTURIES-OLD HISTORY OF THE AUTOMOTIVE INDUSTRY IN HUNGARY 1939 1957 1993 éla Barényi as a constructor for Daimler- erenc Pavlics was a technical director for erenc Anisits (Dr.) played a hugely sig- BBenz, established the basic methodolo- FGeneral Motors, later participating in the Fnificant role in the development of the gies of passive safety in vehicles. Thanks to formation of the Lunar Roving Vehicle in the first eight-cylinder, direct-injection diesel his activity, we have a crash zone, a non- Apollo Space Programme. engine and headed up the BMW Diesel deforming passenger compartment, and Development Centre in Steyr, Austria. the telescopic collapsing steering column in Under his leadership the electronically con- modern cars. In the late forties, he introduced trolled diesel injection system was intro- safety crash tests to the automotive industry. duced in 1993, for which he was awarded Ernst Blickle Innovation Award in 1995. Automotive Industry in Hungary 19 AUTOMOTIVE INDUSTRY HISTORY THE CENTURIES-OLD HISTORY OF THE AUTOMOTIVE INDUSTRY IN HUNGARY now ászló Palkovics is a Professor of Budapest ál Lukács (Phd) has achieved significant he international career of Miklós Kovács LUniversity of Technology and Economics Presults in the area of research and develop- Twas straightforward. Initially, after com- and the Centre of Competence. He was lead- ment, for instance in the area of garage diag- pleting his studies at design college, he got a ing a 100-engineer R&D unit in Budapest, nostic tool development of brake systems for job at Audi as a scholarship recipient. He took and coordinate the worldTheir wide range heavy trucks during the three years spent at part in the preparation of studies on the Audi pre development activities of Knorr Bremse the Knorr-Bremse development institute in A8 and Audi A4 models, and now he is the AG. In his engineering career, he has been Budapest. In recent years, he has been work- designer of the current Hyundai models. In involved in vehicle dynamics, controlled vehi- ing on the development of technologies for the 2011, he received the award of one of Europe's cle sys tems, modeling techniques, hybrid recovery of organic materials from car wrecks most prestigious design competitions, the vehicle drives and safety systems. Now and electronic waste, and is currently engaged Best of the Best Award of the German Red being as a state secretary he is dedicated in in projects on technological innovation in the Dot Design Award. the development of new generations of engi- area of recycling. neers for the future. Automotive Industry in Hungary 21 AUTOMOTIVE INDUSTRY FACTS & FIGURES Over 4 OEMs 1071 HAVE ALREADY EUR/MONTH 520,000 CHOSEN US AVERAGE GROSS EARNINGS PASSENGER CARS (AUDI, MERCEDES, IN THE AUTOMOTIVE INDUSTRY WERE MANUFACTURED OPEL, SUZUKI) (HCSO, 2016) IN HUNGARY IN 2016 OVER 40 OF THE TOP 100 MORE THAN 700 GLOBAL OEM PARTS SUPPLIERS IN THE AUTOMOTIVE INDUSTRY SUPPLIERS HUNGARY IN Production value of the €25.3 industry amounted to BILLION € 25.3 billion in 2016. The automotive industry in Hungary registered a 15.0% 15.0% growth between 2010 and 2016.
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