Hungary recorded a total of 27 automotive investment decisions last year, with a combined value of 1.1 billion euros and the creation of 3,600 new jobs, according to Chief Executive of the Hungarian Investment Promotion Agency (HIPA) István Joó.

Speaking at HIPA’s annual automotive conference in Budapest, Joó said employment in the automotive manufacturing sector reached 164,000, marking a 1.5 per cent increase compared with 2024. He added that this level of growth compares favourably with trends in several Western European countries.

Overall, HIPA supported 108 new investment agreements in 2025, resulting in around 18,200 new jobs. The total value of these investments reached seven billion euros, exceeding the combined figures of the other Visegrád Group countries of Slovakia, Poland and the Czech Republic.

Joó highlighted that the past three decades have brought significant expansion in the sector, with new production capacities established across the country. Between 2010 and 2025, the output of Hungary’s automotive industry quadrupled, while employment increased by 90 per cent, providing a strong foundation for future growth.

He said the long-term outlook for the sector remains stable, with Hungarian plants producing internal combustion engine, hybrid, and fully electric vehicles. Strengthening cooperation and synergies in supplier networks, research and development, and business services centres has been identified as a key objective for the coming period.

The government has adjusted its supplier support scheme to help Hungarian-owned companies integrate into international value chains, and is working on a new targeted programme in this area.

Support for research and development has also been restructured, with the minimum investment threshold lowered to one million euros. Companies registering patents in Hungary are eligible for additional support. Since mid-2025, excluding BYD, 21 such patent registrations have been recorded. The Chinese carmaker has pledged to register half of its Hungary-generated patents domestically.

Joó also noted that the government aims to expand the number of business service centres outside the capital. The sector currently employs around 120,000 people, double the level of five years ago.

Efforts to boost economic development in southern regions will continue, with cities such as Pécs, Nagykanizsa, Szekszárd, and Orosháza highlighted as investment destinations. In northern Hungary, Ózd, Salgótarján and Szerencs were also identified as key locations.

He added that the government is working to strengthen the European Union’s competitiveness by supporting measures to reduce bureaucracy, while continuing to represent the interests of Hungary’s automotive sector in Brussels.

HIPA held its automotive conference for the 12th time this year, with professional support provided by the German–Hungarian Chamber of Industry and Commerce.

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