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Automotive Industry in Hungary 5 AUTOMOTIVE INDUSTRY IN HUNGARY HUNGARY SMART. AMBITIOUS. COMPETITIVE. Automotive Industry in Hungary 5 6 ABOUT HUNGARY 16 AUTOMOTIVE INDUSTRY 30 LABOUR FORCE INNOVATION, 36 E-MOBILITY, AUTONOMOUS DRIVING 46 SUPPLIER NETWORK HUNGARIAN INVESTMENT Published by the Hungarian Investment 50 Promotion Agency, HIPA PROMOTION AGENCY (HIPA) All rights reserved © HIPA, 2018 www.hipa.hu Automotive Industry in Hungary 7 ABOUT HUNGARY MAIN FIGURES CURRENCY FORM OF GDP (PPS) GDP GROWTH GOVERNMENT FORINT EUR 192,855 4.0% PARLIAMENTARY (HUF) MILLION (2017, HCSO) REPUBLIC (2016, HCSO) AREA TIME ZONE 93,023 m2 GMT + 1 HOUR INFLATION 2.4% (2017, HCSO) HUNGARY OTHER MAJOR CITIES POPULATION POPULATION CAPITAL Debrecen (201,981) BUDAPEST Szeged (161,137) 9,797,561 POPULATION Miskolc (157,177) (2017, HCSO) 1,752,704 Pécs (144,675) (2017, HCSO) Győr (129,301) CLIMATE RISK OF NATURAL TEMPERATE DISASTERS (similar to the rest of VERY LOW the continental zone) MEMBERSHIP IN INTERNATIONAL ORGANISATIONS EU, UN, OECD, WTO, NATO, IMF, EC EU member since 2004 (Source: HCSO = Hungarian Central Statistical Office) Automotive Industry in Hungary 9 ABOUT HUNGARYHUNGARY STABLEFDI IN FOCUS ENVIRONMENT ungary is an open economy where particu- lar emphasis is placed on encouraging foreign Hdirect investment (FDI). Partnership with potential investors is a national priority; special atten- tion is paid to the needs of companies already settled in Hungary, and to the further improvement of the business climate. YOU CAN 66% 62% COUNT ON THE 51% GOVERNMENT’S 40% 32% COMMITMENT Inward FDI stock amounted to 66% of the TO FURTHER GDP (2016) the highest IMPROVE THE ratio in the region. HUNGARY CZECH SLOVAKIA POLAND SLOVENIA Source: wiiw FDI Database BUSINESS CLIMATE REPUBLIC Automotive Industry in Hungary 11 ABOUT HUNGARY EXCELLENT LOGISTICS & INFRASTRUCTURE TRANSPORT NETWORK TEN-T CORE CORRIDORS CROSSING HUNGARY MEDITERRANEAN • ORIENT / EAST - MED • RHINE - DANUBE 3 AT THE CROSSROADS EXTENSIVE HIGHLY DEVELOPED OF THREE ROAD & RAILWAY LOGISTICS & TEN-T TRANSPORTATION TELECOMMUNICATIONS CORRIDORS NETWORK INFRASTRUCTURE COMMERCIAL CORRIDORS & INFRASTRUCTURE UKRAINE Záhony Vienna SLOVAKIA M30 Beregdaróc Bra slava M3 Vásárosnamény M15 M2 M49 AUSTRIA M25 M3 M1 M10 M3 M0 M35 M86 BudapestM0 M4 M4 M8 M8 M9 Kersten Bachmann M44 M5 Director, EMEA Operations Airbag M7 SLOVENIA Joyson Safety Systems M9 M9 ROMANIA M9 M43 M6 “The initial evaluation of ten countries resulted in a short M60 list of three countries, in which we analyzed several regions Zagreb SERBIA and cities. Finally, we made a decision for Hungary and CROATIA more specifically in favour of Miskolc. Hungary was chosen as our investment location among other reasons due to the availability of a developed MOTORWAYS IN HUNGARY M5: Budapest – SRB LEGEND European Commission, REGULATION No (EU) 1316/2013 O.J. L348 - 20/12/2013 infrastructure, logistics conditions, strong industrial M1: Budapest – AUT M6: Budapest – Pécs existing traditions and background, as well as due to the availability M3: Budapest – RO/UKR/SK M7: Budapest – SLO planned of skilled workforce and an investor-friendly environment. Also, the renowned technical university of Miskolc as well as the availability of technical and vocational schools played a crucial role while considering our long term plans and strategy.” Automotive Industry in Hungary 13 ABOUT HUNGARY ...has modified its taxation and incentive BUSINESS ENVIRONMENT system related to R&D activities to make Hungary the innovation hub of CEE. ...offers companies a …is committed to strategic partnership, further reduce taxes and provides them on employment. with fast access to the Government. IN ORDER TO IMPROVE ...is helping THE BUSINESS CLIMATE companies to function THE HUNGARIAN reliably by providing a clear agenda on economic GOVERNMENT... development and FDI strategy. ...further improved INVESTMENTS IN FOCUS INVESTMENTS the practice-based dual education system built on industry needs. ...has created ...has introduced its ...has introduced a the most competitive unique economic new incentive scheme CIT in the EU development plan supporting with 9% flat rate. based on Industry 4.0 technology intensive requirements. investments. Automotive Industry in Hungary 15 HUNGARIAN EXPLORE THE COUNTRYSIDE ABOUT HUNGARY PARLIAMENT Hungary’s diverse countryside offers a wide QUALITY OF LIFE BUILDING ranked range of outdoor activities: 11,000 kilometres th of hiking routes; more than 4,000 kilometres of 10 cycle paths; 14 golf courses; 10 national parks; in world's top 10 and many protected nature reserves for those landmarks for 2018 in love with fresh air. The protected Puszta- by TripAdvisor 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. HUNGARY ranked among the TOP 5 COUNTRIES in the BOCUSE D'OR INTERNATIONAL SCHOOLS competition Expatriates looking to stick with the curricula in 2017 of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre- schools for children 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. GASTRO STORY The dining scene in Budapest is livelier Did you know that… than ever, practically you can find the EXPATS LIKE HUNGARY …the kindergarten and the elementary cuisines of every culture in the capital, Budapest is a city full of surprises and school division of the International School of from high-end Michelin-star restaurants wonders, with its lively centre, pretty parks, Debrecen will start to operate in September to no-frill eateries, small bistros and majestic river, tall church spires, and lavish 2019 and its upper school education starts must-try food trucks. spas. One of the most exciting cities in the running from September 2020? world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is the city where being bored is not an option. Automotive Industry in Hungary 17 AUTOMOTIVE INDUSTRY HISTORY 1893 1913 1957 1993 ános Csonka and Donát Bánki constructed ózsef Galamb with others together framed Jthe first petrol vaporizer, (carburet- Jthe concept of the famous Model-T Ford. erenc Pavlics was a technical director for erenc Anisits (Dr.) played a hugely sig- tor), which they patented in February 1893. His intention was to create a car that would FGeneral Motors, later participating in the Fnificant role in the development of the János Csonka was the first to utilise the be cheap and simple to manufacture. In this formation of the Lunar Roving Vehicle in the first eight-cylinder, direct-injection diesel use of aluminium in the manufacturing of model he applied technical innovations, such Apollo Space Programme. engine and headed up the BMW Diesel engines, he also developed controlled inlet as the planetary gear and the removable Development Centre in Steyr, Austria. valves and high voltage magneto ignition for cylinder head. In 1913, with his lead, the Ford Under his leadership the electronically con- petrol engines. Factory switched to serial production on its trolled diesel injection system was intro- production lines. This resulted in the Model-T duced in 1993, for which he was awarded becoming the world’s first mass produced Ernst Blickle Innovation Award in 1995. affordable car. During its 20 year production, over 155 million units were manufactured. Automotive Industry in Hungary 19 AUTOMOTIVE INDUSTRY GOVERNMENT MADE IN HUNGARY 4.0 SUPPORT Aims to strengthen Hungary as an innovation hub for automotive developments Develops a unique independent proving Wide range of ground in Zalaegerszeg engineering and IT for autonomous and education in close electric vehicles cooperation with leading corporate partners ESZTERGOM Magyar Suzuki GYŐR STRONG PRESENCE Audi Hungaria OF LARGE AUTOMOTIVE COMPANIES One of the largest engine Robert Bosch is the largest Mercedes-Benz is manufacturing plants industrial employer currently building up in the world is located in Győr in Hungary and has the its second factory KECSKEMÉT where Audi produces CNG largest R&D centre in SZENTGOTTHÁRD in Hungary Mercedes-Benz and E- Engines as well Budapest outside Germany Opel THEY HAVE ALREADY CHOSEN US! Automotive Industry in Hungary 21 AUTOMOTIVE INDUSTRY FACTS & FIGURES AROUND 4 OEMs 1,194 500,000 HAVE ALREADY EUR/MONTH PASSENGER CARS CHOSEN US AVERAGE GROSS EARNINGS OVER 40 OF THE TOP 100 MORE THAN 700 WERE MANUFACTURED (AUDI, MERCEDES, IN THE AUTOMOTIVE INDUSTRY IN HUNGARY IN 2017 OPEL, SUZUKI) (HCSO, 2017) GLOBAL OEM PARTS SUPPLIERS IN THE AUTOMOTIVE INDUSTRY SUPPLIERS HUNGARY IN The production value of the EUR 26.1 automotive industry amounted BILLION to EUR 26.1 billion in 2017. The production value of the automotive industry achieved an annual average growth 13% of 13% between 2010 and 2017. The automotive industry accounted for 28.7% of 28.7% manufacturing output in 2017. According to KPMG Study, production in Hungary is estimated to grow with a compound annual growth rate of roughly 8% (2017- 8% 2024) – vs. ~ 3% for China and less than 1% for Western Europe* 175,800 – The number of people THE AUTOMOTIVE MAIN 175,800 employed in the automotive industry in 91.8% INDUSTRY GIVES AROUND EXPORT MARKET 2017 Q4, which is 4% of total employment OF THE AUTOMOTIVE INDUSTRY'S OUTPUT 20% EU 87% IS EXPORTED OF HUNGARY’S TOTAL Source: HCSO, 2017, Q4 EXPORTS * KPMG Automotive Executive Survey, 2018 Automotive Industry in Hungary 23 AUTOMOTIVE INDUSTRY OEMs YOU CAN COUNT ON THE QUALITY STRATEGIC PARTNERSHIP LABOUR FORCE ACROSS with Széchenyi István University HUNGARY Did you providing dual education know that… ...the world's largest engine factory is in SIGNIFICANT TEAMWORK Győr, Hungary? among humans and collaborative robots AUDI HUNGARIA Ltd. Achim Heinfling NUMBER OF CAR Chairman of the Board of Management LOCATION FOUNDATION EMPLOYEES PRODUCTION Győr 1993 Audi Hungaria Ltd.
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