Hungary prioritizes electric car investments

Minister of Foreign Affairs and Trade Péter Szijjártó said that the government's efforts are successful and Hungary has become one of the global leaders in the electromobility transition.

At the announcement of the investment by Chinese vehicle manufacturer NIO, the minister said that the company’s first European plant in Biatorbágy will produce automatic battery pack changing stations. 

The container-sized devices to be produced by NIO will operate by replacing the discharged battery pack with a charged one in a fully automated process. Some 240 of these are planned to be produced in Hungary each year, with 4,000 in operation worldwide by 2025.

The project, worth around HUF 5.5 billion, will receive a government grant of HUF 1.7 billion to help create hundreds of new jobs. The plant could also be expanded with a research and development and training center.

Szijjártó pointed out that while in 2007, 81 percent of global investment was financed by Western capital and only 19 percent by Eastern capital, this has now been completely reversed, with the East’s share rising to 56 percent on average over the past three years, while the West’s has fallen to 41 percent.

The minister stressed that the electric car revolution is the most decisive process in the global economy, and the pace is being set from the East, so there is a serious struggle for investment in this sector.

In the last 12 years, Hungary’s exports to the East have increased by 45 percent, and the volume of trade with Eastern countries has grown by 48 percent. In 2021, for example, 60 percent of investments came from the East, and the majority of job creation was linked to these, he added.

The Hungarian economy is based on the automotive industry, which accounts for almost a third of manufacturing output, so attracting more investment in the electric transition is a key priority. 

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