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AUTOMOTIVE INDUSTRY IN HUNGARY

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Page 1: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

AUTOMOTIVEINDUSTRY

IN HUNGARY

Page 2: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

SMART. AMBITIOUS. COMPETITIVE.

HUNGARY

Page 3: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

ABOUT HUNGARY

AUTOMOTIVE INDUSTRY

LABOUR FORCE

SUPPLIER NETWORK

HUNGARIAN INVESTMENT PROMOTION AGENCY (HIPA)

6

16

30

36

46

50

INNOVATION,E-MOBILITY,AUTONOMOUS DRIVING

Published by the Hungarian Investment Promotion Agency, HIPA

All rights reserved © HIPA, 2018www.hipa.hu

Automotive Industry in Hungary 5

Page 4: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

ABOUT HUNGARYMAIN FIGURES

(Source: HCSO = Hungarian Central Statistical Office)

HUNGARY

AREA

93,023 m2

FORM OF GOVERNMENT

PARLIAMENTARY REPUBLIC

TIME ZONEGMT + 1 HOUR

CURRENCYFORINT

(HUF)

GDP (PPS)EUR 192,855

MILLION (2016, HCSO)

GDP GROWTH 4.0%

(2017, HCSO)

MEMBERSHIP IN INTERNATIONAL ORGANISATIONS

EU, UN, OECD, WTO, NATO, IMF, ECEU member since 2004

CLIMATETEMPERATE

(similar to the rest of the continental zone)

RISK OF NATURALDISASTERSVERY LOW

OTHER MAJOR CITIESPOPULATION

Debrecen (201,981)Szeged (161,137)Miskolc (157,177)Pécs (144,675)Győr (129,301)

CAPITALBUDAPEST

POPULATION1,752,704

(2017, HCSO)

POPULATION

9,797,561(2017, HCSO)

INFLATION2.4%

(2017, HCSO)

Automotive Industry in Hungary 7

Page 5: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

YOU CAN COUNT ON THE GOVERNMENT’S COMMITMENT TO FURTHER IMPROVE THE BUSINESS CLIMATE

Hungary is an open economy where particu-lar emphasis is placed on encouraging foreign direct 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.

ABOUT HUNGARYSTABLE ENVIRONMENT

Inward FDI stock amounted to 66% of the GDP (2016) the highest ratio in the region.

Source: wiiw FDI DatabaseHUNGARY

66%

CZECHREPUBLIC

SLOVAKIA POLAND SLOVENIA

ABOUT HUNGARYFDI IN FOCUS

62% 51%

40%

32%

Automotive Industry in Hungary 9

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11Automotive Industry in Hungary

ABOUT HUNGARYLOGISTICS & INFRASTRUCTURE

M15

M1 M3

M0

M9

M5

M43M6

M60

M9

M9

M8

M86M0

M10

M2M25

M30

M3M49

M4 M4

M44

M8M9

M3

M35

M7

Budapest

Bra�slava

Vienna

Zagreb

SLOVAKIA

UKRAINE

ROMANIA

SERBIACROATIA

SLOVENIA

AUSTRIAVásárosnamény

Beregdaróc

Záhony

Euro

pean

Com

mis

sion

, REG

ULA

TIO

N (E

U) N

o 13

16/2

013

O.J

. L34

8 -

20/

12/2

013

TEN-T CORE CORRIDORS CROSSING HUNGARYMEDITERRANEAN • ORIENT / EAST - MED • RHINE - DANUBE

COMMERCIAL CORRIDORS & INFRASTRUCTURE

LEGEND

existing

planned

MOTORWAYS IN HUNGARY M1: Budapest – AUTM3: Budapest – RO/UKR/SK

M5: Budapest – SRBM6: Budapest – PécsM7: Budapest – SLO

EXTENSIVE ROAD & RAILWAY

TRANSPORTATION NETWORK

HIGHLY DEVELOPED LOGISTICS &

TELECOMMUNICATIONS INFRASTRUCTURE

AT THE CROSSROADSOF THREE

TEN-TCORRIDORS

3

EXCELLENT TRANSPORT NETWORK

“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 favour of Miskolc.Hungary was chosen as our investment location among other reasons due to the availability of a developed infrastructure, logistics conditions, strong industrial traditions and background, as well as due to the availability 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.”

Kersten BachmannDirector, EMEA Operations AirbagJoyson Safety Systems

Page 7: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

ABOUT HUNGARYBUSINESS ENVIRONMENT

IN ORDER TO IMPROVE THE BUSINESS CLIMATE

THE HUNGARIAN GOVERNMENT...

...is helping companies to function reliably by providing a

clear agenda on economic development and FDI

strategy.

...has modified its taxation and incentive system related to R&D

activities to make Hungary the innovation

hub of CEE.

…is committed to further reduce taxes

on employment.

...has introduced a new incentive scheme

supporting technology intensive

investments.

...offers companies a strategic partnership,

and provides them with fast access to the

Government.

...has created the most competitive

CIT in the EU with 9% flat rate.

...further improved the practice-based

dual education system built on industry

needs.

...has introduced itsunique economic

development planbased on Industry 4.0

requirements.

INV

ESTM

ENTS

IN F

OCU

S13Automotive Industry in Hungary

Page 8: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

10th

HUNGARIANPARLIAMENT

BUILDING ranked

in world's top 10landmarks for 2018

by TripAdvisor

GASTRO STORYThe dining scene in Budapest is livelier than ever, practically you can find the cuisines of every culture in the capital, from high-end Michelin-star restaurants to no-frill eateries, small bistros and must-try food trucks.

EXPATS LIKE HUNGARYBudapest 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 the city where being bored is not an option.

INTERNATIONAL SCHOOLSExpatriates looking to stick with the curricula 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.

EXPLORE THE COUNTRYSIDEHungary’s diverse countryside offers a wide range of outdoor activities: 11,000 kilometres of hiking routes; more than 4,000 kilometres ofcycle paths; 14 golf courses; 10 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.

Did you know that……the kindergarten and the elementary school division of the International School of Debrecen will start to operate in September 2019 and its upper school education starts running from September 2020?

5HUNGARY

ranked among the

TOP COUNTRIESin the BOCUSE D'OR

competition in 2017

ABOUT HUNGARYQUALITY OF LIFE

Automotive Industry in Hungary 15

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17Automotive Industry in Hungary

János Csonka and Donát Bánki constructed the first petrol vaporizer, (carburet-

tor), which they patented in February 1893. János Csonka was the first to utilise the use of aluminium in the manufacturing of engines, he also developed controlled inlet valves and high voltage magneto ignition for petrol engines.

József Galamb with others together framed the concept of the famous Model-T Ford.

His intention was to create a car that would be cheap and simple to manufacture. In this model he applied technical innovations, such as the planetary gear and the removable cylinder head. In 1913, with his lead, the Ford Factory switched to serial production on its 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.

1913

AUTOMOTIVE INDUSTRYHISTORY

1893 1957

Ferenc Pavlics was a technical director for General Motors, later participating in the

formation of the Lunar Roving Vehicle in the Apollo Space Programme.

Ferenc Anisits (Dr.) played a hugely sig-nificant role in the development of the

first eight-cylinder, direct-injection diesel engine and headed up the BMW Diesel Development Centre in Steyr, Austria. Under his leadership the electronically con-trolled diesel injection system was intro-duced in 1993, for which he was awarded Ernst Blickle Innovation Award in 1995.

1993

Page 10: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

GOVERNMENT SUPPORT

STRONG PRESENCE OF LARGE AUTOMOTIVE COMPANIES

One of the largest engine manufacturing plants

in the world is located in Győr where Audi produces CNG

and E- Engines as well

Mercedes-Benz is currently building up

its second factory in Hungary

Robert Bosch is the largest industrial employer

in Hungary and has the largest R&D centre in

Budapest outside Germany

GYŐR Audi Hungaria

SZENTGOTTHÁRD Opel

KECSKEMÉT Mercedes-Benz

THEY HAVE ALREADYCHOSEN US!

Aims to strengthen Hungary as

an innovation hub for automotive developments

Wide range of engineering and IT education in close

cooperation with leading corporate partners

ESZTERGOM Magyar Suzuki

Develops a unique independent proving

ground in Zalaegerszeg for autonomous and

electric vehicles

AUTOMOTIVE INDUSTRYMADE IN HUNGARY 4.0

Automotive Industry in Hungary 19

Page 11: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

OVER 40 OF THE TOP 100GLOBAL OEM PARTS

SUPPLIERS

MORE THAN 700SUPPLIERS IN THE AUTOMOTIVE INDUSTRYIN

HU

NG

AR

Y

Source: HCSO, 2017, Q4* KPMG Automotive Executive Survey, 2018

The production value of the automotive industry achieved an annual average growth of 13% between 2010 and 2017.

13%

The production value of the automotive industry amounted to EUR 26.1 billion in 2017.

EUR 26.1 BILLION

The automotive industry accounted for 28.7% of manufacturing output in 2017.28.7%

175,800 – The number of people employed in the automotive industry in 2017 Q4, which is 4% of total employment

175,800 91.8%OF THE AUTOMOTIVE INDUSTRY'S OUTPUT

IS EXPORTED

THE AUTOMOTIVE INDUSTRY GIVES AROUND

20% OF HUNGARY’S TOTAL

EXPORTS

MAIN EXPORT MARKET

EU 87%

AROUND

500,000 PASSENGER CARS

WERE MANUFACTURED IN HUNGARY IN 2017

4 OEMsHAVE ALREADY

CHOSEN US (AUDI, MERCEDES,

OPEL, SUZUKI)

1,194EUR/MONTH

AVERAGE GROSS EARNINGSIN THE AUTOMOTIVE INDUSTRY

(HCSO, 2017)

According to KPMG Study, production in Hungary is estimated to grow with a compound annual growth rate of roughly 8% (2017-2024) – vs. ~ 3% for China and less than 1% for Western Europe*

8%

AUTOMOTIVE INDUSTRYFACTS & FIGURES

Automotive Industry in Hungary 21

Page 12: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

YOU CAN COUNT ON THE QUALITY LABOUR FORCE ACROSSHUNGARY

AUDI HUNGARIA Ltd.

LOCATIONGyőr

FOUNDATION1993

NUMBER OF EMPLOYEES

12,307 (2017)

PRODUCTSAudi TT Coupé, TT Roadster,

A3 Limousine and A3 Cabriolet, RS 3 Limousine

NEW PRODUCTSQ3 (from 2018)Q4 (from 2019)

CAR PRODUCTION

105,491 (2017)

ENGINE PRODUCTION

1,965,165(2017)

CNG (from 2017)E-engine (from 2018)

Automotive Industry in Hungary 23

AUTOMOTIVE INDUSTRYOEMs

"We decided to establish a production unit in Hungary 25 years ago. Since then AUDI HUNGARIA Zrt. has become the biggest engine factory and one of the most modern car production plants of the world. It employs more than 12,000 people. The central location of Hungary, the advanced infrastructure, the stable political and economic conditions of Hungary as an industrial site and skilled workforce all contribute to the success of our company. We are at home in Hungary, in a beautiful city, in Győr.”

Achim Heinfling Chairman of the Board of Management Audi Hungaria Ltd.

Did you know that…

...the world's largest engine factory is in

Győr, Hungary?

STRATEGIC PARTNERSHIP with Széchenyi István University

providing dual education

SIGNIFICANT TEAMWORKamong humans

and collaborative robots

Page 13: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

MAGYAR SUZUKI CORPORATION(SUZUKI MOTOR CORPORATION)

LOCATIONEsztergom

FOUNDATION1991

NUMBER OF EMPLOYEES

3,100

PRODUCTSSX4

S-CROSS Vitara

CAR PRODUCTION

176,705(2017)

Did you know that…...a total of 770 robots cover the entire manu-

facturing process in the Esztergom plant?

AUTOMOTIVE INDUSTRYOEMs

Automotive Industry in Hungary 25

"I believe that Hungary, and especially its automotive supplier base, has an outstanding potential for development. As to our car plant in Esztergom, it is located in the heart of the country, but it is also close to the capital city of Budapest, which is the largest Hungarian city with the largest pool of professional talent. The constantly developing infrastructure of our country allows for the Suzuki products, such as Vitara, an easy access to the European and global markets. Our talented, dedicated and hard-working innovation-minded personnel enable us to provide our customers with world-class cars, which have the ’Made in Hungary’ plaque on them while embodying the values of Hungarian talent alloyed with state-of-the-art Japanese technology."

Dr. László Urbán Deputy CEOMagyar Suzuki Corporation

Page 14: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

Did you know that…...CLA and CLA Shooting Brake are made solely in Kecskemét, Hungary?

AUTOMOTIVE INDUSTRYOEMs

Automotive Industry in Hungary 27

MERCEDES-BENZ MANUFACTURINGHUNGARY Ltd.

LOCATIONKecskemét

PRODUCTIONSTART

2012

NUMBER OF EMPLOYEES

4,000

PRODUCTSA-Class,

CLA, CLA Shooting

Brake

“Since the production has started in 2012, the past years have been a success for Mercedes-Benz Kecskemét plant in Hungary. We are particularly proud to say that two of the three Mercedes-Benz models made in Kecskemét, called the CLA and CLA Shooting Brake are produced exclusively for customers around the world. In 2018, Mercedes-Benz's new A-Class also joins the production range of the Kecskemét site. In addition, we will invest 1 billion EUR in building a second factory until the end of the decade to create 2,500 new jobs. The construction of the Mercedes-Benz Academy Kecskemét training center started in 2017, which in the first place opens up space for students in the dual education to study with the most innovative educational tools from September 2018. Our series of investment is a clear sign of our commitment to Hungary, the government and the leaders of Kecskemét are key partners in our endeavors. We believe in quality work that is the most important aspect of our work and for that we rely on an effective and loyal employee team in Hungary.”

Christian WolffCEOMercedes-Benz Manufacturing Hungary Ltd.

CAR PRODUCTION

>190,000(2017)

Page 15: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

OPEL SZENTGOTTHÁRD LTD.(PSA)

PRODUCTSengines,

cylinder heads,transmissions

ENGINE PRODUCTION

486,302(2017)

LOCATIONSzentgotthárd

FOUNDATION1991

NUMBER OF EMPLOYEES

1,251

Did you know that…..."Engine of the year 2017" award winner 1.2 L 3-cylinder turbo PureTech gasoline engine will also be manufactured in Szentgotthárd?

Automotive Industry in Hungary 29

AUTOMOTIVE INDUSTRYOEMs

“After 25 years of production and a total investment of over 1.5 billion Euros, Opel Szentgotthárd reached a new historical milestone in 2017, becoming part of Groupe PSA. With new owner came expansion of the product portfolio, which now will include also the award winning 1.2 liter three cylinder turbo gasoline PSA engine. Hungary is important for us, not only because of our manufacturing presence – Opel has the largest carpark with over 500,000 vehicles running on the Hungarian roads and the brand has always been in the top three in terms of sales since it officially started back in 1991. I trust that with the new engine project we have everything in place to look forward to another successful chapter for Opel in Hungary”

Grzegorz BuchalManaging DirectorOpel Szentgotthárd Ltd.

Page 16: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

YOU CAN RELY ON GLOBALLY ACKNOWLEDGEDHUMAN CAPITAL AT A COMPETITIVE COST

8.3

RO

MA

NIA

IRE

LAN

D

BU

LGA

RIA

LIT

HU

AN

IA

AU

ST

RIA

LAT

VIA

NE

TH

ER

LAN

DS

HU

NG

ARY

FIN

LAN

D

PO

LAN

D

FR

AN

CE

CR

OA

TIA

GE

RM

AN

Y

CZ

EC

H R

EP

UB

LIC

SW

ED

EN

ES

TO

NIA

DE

NM

AR

K

SLO

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KIA

BE

LGIU

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RT

UG

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LTA

SLO

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CY

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GR

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SPA

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DO

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ITA

LY

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Sour

ce: E

UR

OST

AT

COMPETITIVE LABOUR COSTSIN THE INDUSTRY

Total hourly labour costs, € (2016)

10203040

0

50

Automotive Industry in Hungary 31

LABOUR FORCEPRODUCTIVITY

“Continental is one of the leading technology companies in the world. Day by day we strive to create the highest quality products and services, we are a pioneer in the field of technologic development. Our company operating for 25 years in Hungary perform manufacturing, software-development and distribution activities at Budapest, Veszprém, Szeged, Makó, Vác, Nyíregyháza and Budaörs. Following the investments realized in the past years at Nyíregyháza, Vác and Makó, our company launches an artificial intelligence development centre at Budapest in May 2018. A greenfield investment will also commence at Debrecen. We expand continuously our activities in Hungary, because of the competitive business environment. Continental contributes to creating a sustainable labour force situation - which is a key issue for us – by cooperating with a number of prestigious universities, through our participation in dual learning, our internship program and training centre.”

Dániel RábaiHead of Focus Country, Continental Group Hungary

“DENSO Manufacturing Hungary Ltd. currently has - including rented associates - more than 5,000 employees so we can say that we are one of the biggest employers of our Central-Transdanubian region. The cause for this great performance is that in Hungary we found a real good place to invest and to develop our business. The central location of Hungary on the continent ensures continuous economical development to the country. Besides that the Hungarian workforce have real good features as the people are clever, hardworking and the school system gives a sincere and useful knowledge on each level. I believe that Hungary was a wise choice for our mother company as in 2017 DENSO celebrates its 20th year of operation in Hungary and the company plans to stay in the country for much more decades."

Kato Yukihiro PresidentDENSO Manufacturing Hungary Ltd.

Page 17: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

THE MEETING POINT OF CORPORATE CULTURE

& EDUCATIONAL POTENTIAL

TRAINING of young engineers

based on internationally

approved standards

Participation in real INDUSTRIAL

PROJECTSduring studies

CLOSE COOPERATION

between corporate partners

& universities

CUSTOMIZED CURRICULUMS & DEPARTMENTS

strongly linked to the actual needs of

the industry

Participation in STUDENT

COMPETITIONS

Strong focus on engineering and IT education in dual education system

CO-OPERATION WITH INDUSTRY ON ALL LEVELS

OVERVIEW OF THE EDUCATION SYSTEM

IN HUNGARY

ELEMENTARY SCHOOL

HIGHER EDUCATION

GRAMMAR SCHOOL VOCATIONAL SCHOOL

VOCATIONAL “GRAMMAR” SCHOOL

VOCATIONAL SCHOOL –TECHNICAL TRAINING

MATRICULATIONQUALIFICATION

AND MATRICULATION

Automotive Industry in Hungary 33

LABOUR FORCEEDUCATION SYSTEM

LABOUR FORCEDUAL EDUCATION SYSTEM

Page 18: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

3,200

VESZPRÉMUniversity

of Pannonia

AUTOMOTIVE-RELATED HIGHER EDUCATION HUBS

SZEGEDUniversity of SzegedDUNAÚJVÁROS

University of Dunaújváros

PÉCSUniversity

of Pécs

4,700

1,470

1,500

1,000

25,800

2,600

1,750

4,350

KECSKEMÉTJohn von Neumann

University

DEBRECENUniversity

of Debrecen

Selected partners in dual education are displayed on the map

Number of students in the field of engineering and IT

GYŐRSzéchenyi István University

Audi Hungaria Faculty of Automotive

Engineering

MISKOLCUniversity of Miskolc

• Faculty of Materials Science and Engineering

• Robert Bosch Faculty of Mechatronics

Source: Educational Authority, 2017

BUDAPEST• Budapest University

of Technology and Economics• Óbuda University

• Eötvös Loránd University• Dennis Gabor Collage

• Pázmány Péter University

Other cities with engineering or IT faculties: Nyíregyháza, Székesfehérvár, Eger, Zalaegerszeg, Sopron, Szombathely

At the end of academic year 2016/2017 the number of

students who were engaged in vocational dual training

was over 50,000. Until 2018 it is expected to increase to

70,000. +Great number

of available productive labour with

competitive costs

In the 2017/2018 academic year 26 higher

education institutions offered dual education programmes.

The number of partner organisations increased

to almost

600.

Owing to the practice-based education system, highly-

skilled graduates will enter the labour market annually meeting

the ever-growing demand of enterprises.

In the 2017/2018 academic year, higher education

in the dual form in Hungary is provided in the agricultural, economic, engineering and

information technology areas, thus highly qualified young

graduates will continue to be available for companies.

35Automotive Industry in Hungary

LABOUR FORCEDUAL EDUCATION SYSTEM

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SZEGEDNNG

KECSKEMÉTKNORR-BREMSE

PHOENIX MECANO

MAJOR AUTOMOTIVER&D CENTRES

IN HUNGARY

DUNAVARSÁNYIBIDEN

BUDAPESTAVL

BOSCHCONTINENTAL

NNGKNORR-BREMSETHYSSENKRUPP

VESZPRÉMCONTINENTAL

VALEO

SZOMBATHELYTDK (EPCOS)

SZOMBATHELYEPCOS

DEBRECENNI

VIP cash grant for the support

of R&D activity

Favourable taxation system:0% social contribution

payable after employees with PhD

Deductible R&D costs:corporate income tax base

and social contribution reduction possibilities

GYŐRAUDI

ZALAEGERSZEGZALAZONE TEST

TRACK

Marc de Bastos EcksteinGeneral Manager thyssenkrupp Components Technology Hungary

"Thyssenkrupp is a technology leader in the field of steering systems and a major innovative partner of the automotive industry worldwide. Our Competence Center in Budapest develops complex steering systems and novel functions that include software and also hardware for both passenger cars and light trucks. We give our OEM partners a way to differentiate themselves by a unique steering and precise handling feel. With production plants of steering systems and integrated camshafts located also in Hungary, we can fully leverage the know-how of our Competence Center in Budapest. As the latest milestone of thyssenkrupp's history in Hungary, a springs and stabilizers plant is under construction in the Eastern part of the country."

Automotive Industry in Hungary 37

INNOVATION

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MAINR&D ACTIVITIES

IN HUNGARY IN THE AUTOMOTIVE

INDUSTRY

product development of capital equipment,

Advanced Driver Assistance Systems

(ADAS)

design and manufacturing Diesel

Particle Filters for vehicle exhaust gas and Sealing Materials for automotive

catalytic converters

development of navigation and various software for the automotive industry, which are used by more

than 30 OEMs

smart-car parts development such

as keyless entry and ignition system, optical parking assist systems, lane departure warning

systems, or various board recognition

powertrains, measuring tools and software

development

engine development (CNG engine),

humanoid robot hands

autonomous driving and e-mobility related

projects

electronic and autonomous steering

systems (e.g. cross-wind compensation, lane

keeping assist, parking assistance), autonomous

driving

product development of electronic control and camera control

units, driving assistance systems

mechanical components (for brakes and

drive trains) and electrical systems and components (software, hardware), pneumatic

brake systems, SW components, I-Com

Assist (Drives Advisory System

cutting-edge measurement and

automation devices

development of plastic and mechanical

components

Beside big players, two Hungarian innovative companies,

AImotive and Commsignia also have R&D activity

in the field of artificial intelligence and autonomous driving.

Automotive Industry in Hungary 39

INNOVATION

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447

HU

NG

ARY

SLO

VA

KIA

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2018

CZ

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500

400

300

200

100

0

Number of charging stations and locations in CEE countries

JEDLIK ÁNYOSPLAN

Hungary was the first in the CEE region to adopt

an e-mobility concept

Direct and indirect incentives

to promote e-mobility

Government program to increase the number of

charging stations

Upgrading the public transportation fleet

to electric vehicles to 25%

The government aims to upgrade the governmental fleet

of EVs to 30% by 2030

Supporting R&D&I activities

related to e-mobility

Automotive Industry in Hungary 41

E-MOBILITY

"The world is changing and this requires us to change as well. Bosch is in the midst of a transition to a new form of mobility and stand at the threshold of the age of connectivity. We want to play an active role in shaping both. The Bosch Group’s strategic objective is to create solutions for a connected life and to improve quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.” This offers a promising future. Bosch has been present in Hungary since 1898 with its products. This year the company is celebrating the 120th anniversary of the opening of its first Hungarian operation. After its re-establishment as a regional trading company in 1991, Bosch has grown into Hungary’s largest foreign industrial employers with currently nine Hungarian subsidiaries. In Hungary more than 14,200 committed associates (as per January 1, 2017), amongst them more than 2,400 in research and development work day by day with passion on one of the most exciting things ever: shaping the future. I believe Hungary is capable of being in the driver seat for a successful change.”

Daniel KoriothRepresentative of the Bosch Group in Hungary

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EVMANUFACTURING

HUNGARY TO BECOME

THE LARGEST EV BATTERY

MANUFACTURERIN EUROPEAudi started its

e-engine production in the beginning of 2018

in Győr

GS Yuasa Corporation:

starts lithium-ion battery manufacturing

in Miskolc in 2018

EV-related R&DBosch and Thyssenkrupp

have significant e-mobility related

R&D activities

BYDpure electric

bus production since 2017

in the city ofKomárom

SK Innovation:EV battery production

in the plant in Komárom will be launched

in 2020

Samsung SDI:EV battery production

started in 2017in Göd

Automotive Industry in Hungary 43

E-MOBILITY

Page 23: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

265 ha

ZALAZONE TEST TRACKGOVERNMENTAL INVESTMENT

IN AUTONOMOUS DRIVING

R&D AND EDUCATIONAL BACKGROUND, DEDICATED COURSES• Autonomous Vehicle Control MSc

(English) in Budapest • Autonomous Vehicle Programming MSc

(English) in Budapest • Automotive Test Engineer BEng

in Zalaegerszeg• Mechatronic Engineering BSc in Zalaegerszeg• Basic and advanced research in Artificial

Intelligence, Co-operative control, Cyber security and Driverless technologies S

ever

al e

lem

ents

are

ava

ilabl

e fr

om 2

018

, com

plet

e fi

nish

in 2

020

.

Availabledevelopment

area

High speed mobile network

(5G)

Legal environment for AV public

road tests

TESTING ELEMENTS• Dynamic platform• Braking surface• Handling course• Connecting road network• High-speed oval track• Smart City zoneFURTHER PROVING GROUND DEVELOPMENT• 5G & ITS G5 Networks testing environment• Bad roads • Slopes • Noise measurement surface • Additional vehicle dynamical modules • Expansion of the Smart City urban

and suburban environment

Autonomous & electric vehicle test environment fusion with

classic dynamic elements

Automotive Industry in Hungary 45

AUTONOMOUS DRIVING

Page 24: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

AVL AUTÓKUT ENGINEERING LTD. / CASCADE ENGINEERING EUROPE / CLARION / CONTINENTAL AUTOM. / CONTITECH FLUID / DRAEXLMAIER / EMT / EXCEL CSEPEL / FESTO / FLEXTRONICS / GE LIGHTING / IBIDEN / KNORR-BREMSE / LEAR / MGM / MICHELIN / MONO-IPOLYFABRIC / PEMÜ / SAMSUNG SDI / SCHWARZMÜLLER / SEMCON / SIEMENS VDO / TAURIL / THYSSENKRUPP / TOYO SEAT / TUNGSRAM / VOGEL SITZE / WEBASTO / GENTHERM / ZOLLNER

CENTRAL HUNGARY

ARCELORMITTAR / AUTOLIV / B.O.S. / BPW / DANA / DELPHI / EDAG / ERBSLÖH / EURO EXEDY / EURO ELZETT / FEDERAL MOGUL / FLEXTRONICS / GYŐRI PLAST / HIRSCHLER / KRAVTEX / LUK SAVARIA / MAGNA STEYR / NEMAK / RÁBA / REHAU / REKARD PRODUKT / VERITAS / SMR / VOGEL UND NOOT / WUPPERMANN

WESTERN TRANSDANUBIA

AJKAI ELEKTRONIKA / ALBERT WEBER / ALCOA / ALUMETAL / AGC GLASS HUNGARY / BENTELER / BORG WARNER / BOURNS / BRIDGESTONE / BYD /COLOPLAST / CONTINENTAL AUTOM. / DENSO / DIAMOND ELECTRIC / EXEDY DYNAX EUROPE / HYDRA EXTRUSION / GEDIA / GESTAMP / HANKOOK / WILD MANUFACTURING / JOHNSON CONTROLS / KARSAI PLAST / KIRCHHOFF / LE BÉLIER / MAGYARMET / MUSASHI / PLASTICOR / PLASTIMAT / SK INNOVATION

CENTRAL TRANSDANUBIA

AKZO NOBEL COATINGS / APOLLO TYRES / TISZA AUTOMOTIVE / BOSCH / CSABACAST / DELPHI / DELTA-TECH / LEAX / FIRTH RIXSON / GIBBS / HI-LEX / KNAUS TABBERT / KOVÁCS / LEAR / LEONI / MITSUBA / MODINE / PREC-CAST / JOHNSON ELECTRIC ÓZD / SALGGLAS / SHINWA / STANLEY ELECTRIC / TAKATA / TECHNOPLAST / ZF / HÜBNER / SICTA / RUAG

NORTHERN HUNGARY

CAROFLEX / COLOPLAST / EAGLE OTTAWA / EISMANN / FAG (SCHAEFFLER) / FAURECIA / JOPP INTERIOR / F.SEGURA / HAJDU AUTÓ / HALDEX / HÜBNER / AUNDE / JÁSZ-PLASZTIK / LE BÉLIER / MICHELIN / SINTEX-NP / PHOENIX-MECANO / ROSENBERGER THYSSENKRUPP / SMR / SONA

NORTHERN GREAT PLAN

BROSE / CONTITECH FLUID / CONTITECH RUBBER / CSABA-METÁL / ECKERLE / EMIKA / EUROFIT / FREUDENBERG / HAUNI / HIRSCHMANN / HBPO / JOHNSON CONTROLS / KALOPLASTIC / KNORR-BREMSE / KUNPLAST-KARSAI / LINAMAR / MAGNA EXTERIORS / PATA / PHOENIX MECANO / THYSSENKRUPP / ZORGE

SOUTHERN GREAT PLAN

BHG / CABTEC / HARMAN / INTERPLUS /MAGNUS AIRCRAFT / RATIPUR /

SOUTHERN TRANSDANUBIA

Szeged

Kecskemét

Debrecen

Nyíregyháza

MiskolcEger

HatvanGyőr

Szombat-hely

Székesfehérvár Dunaharszti

Budapest

Veszprém

Pécs

RÁBA

VALEODENSO

VISTEON

BOSCHTAKATA

BOSCHZF

BOSCH

CONTINENTAL

HARMAN

KNORR-BREMSEPHOENIX MECANOSCHWARZMÜLLER

BPW

FAGNATIONAL

INSTRUMENTSMICHELIN

AVLBOSCH

THYSSENKRUPP

MAJOR AUTOMOTIVE SUPPLIERS IN HUNGARY

MORE THAN

700SUPPLIERSIN THE AUTOMOTIVEINDUSTRY IN HUNGARY

Zalaegerzeg

FLEXTRONICS

Automotive Industry in Hungary 47

SUPPLIER NETWORK

“The BorgWarner turbocharger plant in Oroszlány was originally built to serve one of the most important Audi factories located in the region, but it soon began to manufacture the products itself as well and broaden its customer portfolio. From the very beginning, the company has seen strong growth, doubling its turnover year by year. BorgWarner have been committed to make this growth possible along the following reasons.• Investments creating workplaces and providing opportunities for the economic development of different regions have highly been encouraged by Hungarian Government incentives. • BorgWarner has an excellent customer footprint in Hungary.• Hungary and the region itself have an adequate industrial culture; well trained in the automotive industry. There are several technical universities in Hungary and salaried workforce can be hired from countrywide. • The region itself has also been providing available labor force; both white collars and blue collars. • Hungary’s advantage is also its great logistics opportunities and infrastructure.”

Attila BogárGeneral Manager of BorgWarner Oroszlany Ltd.

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Continental has a more than 25 years history in Hungary. The company has several sites across the country, in the following cities: Budapest, Budaörs, Veszprém, Makó, Nyíregyháza, Szeged

and Vác employing more than 8,000 persons. ContiTech manufactures in Szeged two main product groups: textile conveyor belts mainly for the mining industry and rubber as well as composite hoses mainly for the oil industry. The site has the world's biggest capacity of textile conveyor belt production and supplies approximately one third of the oil hose market. Contitech plants in Makó, Nyíregyháza and Vác provide the biggest portion of heating- cooling tubes within Continental. The Automotive plant in Budapest and Veszprém produce vehicle electronic components and microelectronic circuit modules, using state-of-the-art and innovative technologies, being engaged in almost all areas of vehicle electronics for the Continental divisions Chassis & Safety, Powertrain and Interior, and supplies all major car producers worldwide. The product range in Budapest includes brake systems, various comfort and chassis electronic components, sensor clusters, electronic control units for electronic stability systems and hybrid drive systems, body control electronics, oil sensors etc. Tire division is represented by a commercial office and a logistic center in Budaörs.

Bosch has been present in Hungary since 1898 with its products and in 2018 it is celebrating the 100th anniversary of opening of its first Hungarian

operation. Now Bosch is one of Hungary’s largest foreign industrial employers with currently 9 Hungarian subsidiaries, including 7 manufacturing plants. The Engineering Center Budapest is the largest European development center outside Germany. The Bosch Group employs roughly 13,500 people in Hungary, including more than 2,300 engineers in R&D. The company’s growth is also supported by the activities of the Hungarian Investment Promotion Agency.

CONTINENTAL GROUP HUNGARY

BOSCH GROUP IN HUNGARY

OVER

40 OF THE

TOP 100 GLOBAL OEM PARTS

SUPPLIERS are available in Hungary

Automotive Industry in Hungary 49

SUPPLIER NETWORK

Page 26: AUTOMOTIVE INDUSTRY - hipa.hu · about hungary automotive industry labour force supplier network hungarian investment promotion agency (hipa) 6 16 30 36 46 50 innovation, e-mobility,

HOW DO WE SUPPORT YOUR

AUTOMOTIVE PROJECT?

BEFORE YOU MAKE A DECISION

WE OFFER YOU….

AFTER YOU HAVE CHOSEN

HUNGARY

PLEASE CONTACT USAddress: 1055 Budapest, Honvéd utca 20. Customer service: [email protected]

Telephone: +36 1 872 6520Web: www.hipa.hu

We support your further expansion

and plans.

….meetings with HR & real estate agencies,

law firms and other consultants

based on your needs.

….tailor-made incentive offers and information

packages on the business environment,

labour market, tax regulations, etc.

….reference visits at companies that are

already established in Hungary.

…. location search & evaluation

+site visits.

….assistance with your incentive

application.

….one-stop-shop management

consultancy services to address your business needs.

We are open to your feedback and offer mediation

between government and business based

on your inputs.

HIPAOUR SERVICES

Automotive Industry in Hungary 51

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OUR SERVICESFOR

INTEGRATORS

FOROEMs / SUPPLIERS

FORSUPPLIERS

SUPPLIERLISTS

=Filtering

SUPPLIER LISTSby company

requests

B2B,SUPPLIER FORUM

=Personal encounterbetween potential

suppliers and producers

UNIVERSITY AND R&D COOPERATION

=Supporting

educational and R&D cooperation between

universities and suppliers

PARTNERSHIPAGREEMENT

=Cooperations and

common projects todevelop Hungarian

suppliers

CERTIFIED SUPPLIERDATABASE

=Online, interactivecertified supplier

database and virtualmarketplace

EDUCATION, TRAINING

=Professional trainings

in several fields (efficiency trainings,

benchmarking techniques, automotive

standards)

DEVELOPMENTOF ACTUALSUPPLIERS

=Training for the

Hungarian suppliers,and potential

suppliers

PUBLICATIONS,MARKET

INFORMATION=

Information about the current Hungarian

supplier base

EXHIBITIONS=

Appearance on Hungarian and

international exhibitions and

fairs

Automotive Industry in Hungary 53

HIPASUPPLIER DEVELOPMENT

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SOUTHERNTRANSDANUBIA

CENTRALTRANSDANUBIA

WESTERNTRANS-

DANUBIA

SOUTHERNGREAT PLAIN

CENTRAL HUNGARY, Budapest

NORTHERNGREAT PLAIN

NORTHERNHUNGARY

Pécs

Szeged

Debrecen

Miskolc

Győr

Székesfehérvár

25%

35%

0 / 20 / 35%

50%

35%

The maximum available aid intensity decreases if the investment is a large investment (exceeding EUR 50 million): 50% of the maximum aid intensity determined in the regional aid map is available for investment between EUR 50 and EUR 100 million, with 34% of the maximum aid intensity for investment over EUR 100 million.For information on up-to-date and individual incentive packages please contact HIPA directly.

Regional grants are the most typical forms of incentives for greenfield / brownfield investments or reinvestments. The maximum amount of regional incentive is shown on the regional aid intensity map. The map below illustrates that regional aid available for investment for a large enterprise may be up to 50% of the eligible costs of the investment, depending on the region. For investments not exceeding EUR 50 million, the maximum intensity ratio can be increased by 10 percent for medium-sized and by 20 percent for small enterprises.

INVESTORS MAY APPLY FOR VIP CASH SUBSIDY

WITH CAPACITY EXPANSION AND TECHNOLOGY-INTENSIVE

INVESTMENT PROJECTS WHICH DO NOT RESULT IN THE INCREASE

OF THE HEADCOUNT

Different preferentialterms for eligibility

GOVERNMENT INCENTIVES

THESE INCENTIVES INCLUDE, BUT ARE NOT LIMITED TO

CASH SUBSIDIESfor investments,

training, job creation

and R&D

TAX INCENTIVESreduction of

corporate tax, social tax, or for

encouraging R&D activities…

LOW-INTEREST LOANS

TRAINING SUBSIDIES

HIPAINCENTIVES OVERVIEW

As a member of the European Union, Hungary’s regulations on incentive opportunities are in accordance with the EU rules. One of Hungary’s

competitive advantages over other countries in the region is the Government’s strong commitment to increase the competitiveness of SMEs and large enterprises in Hungary.Alongside the regulatory tools that contribute to the competitive business environment of local companies, Hungary offers wide-ranging incentives to facilitate foreign direct investments and reinvestments by local enterprises. In addition to the "Made in Hungary" type investments, increasing emphasis is being put on "Invented in Hungary" type of projects with the aim of supporting the implementation of Industry 4.0 solutions and the strengthening of Hungary as an innovation hub of Europe.From the beginning of 2017, favorable changes have been introduced in the non-refundable VIP cash grant system supporting R&D projects and technology-intensive investments.

Automotive Industry in Hungary 55

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MER

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