A new industrial revolution is quietly emerging. In the field of electric vehicles, Chinese manufacturers are gradually taking over the European market, and Hungary is becoming the biggest beneficiary of this process.
In recent years, Chinese electric vehicle companies have set up factories in Hungary, impacting the status of traditional European car companies with their cost advantages and technical advantages. Reuters reported that this forced European Commission President Ursula von der Leyen to say that the EU was ready to impose punitive tariffs on Chinese car imports. However, Chinese automakers did not stop there, but instead set up in Hungary to find a way to deal with tariffs.
As a result, the Hungarian automotive industry has ushered in unprecedented development opportunities. Led by Chinese automakers, the small Central European country is accelerating to overtake Germany to become Europe's leading electric vehicle production base. From the production of electric vehicles to the manufacture of power batteries, Hungary is becoming a key node that cannot be ignored.
This change not only boosted the take-off of the Hungarian automotive industry, but also injected new vitality into the local economy. More and more Chinese investment is pouring into Hungary, driving employment and industrial upgrading, making the country an important stronghold for Chinese companies in Europe. Behind this, there is also the support of the Hungarian government's positive actions and energy price advantages.
It may seem like a small country, but Hungary is becoming a "bridgehead" for Chinese companies to expand their territory and occupy the European market. This industrial transformation not only affects the European automotive landscape, but also proves once again that the strength of China's manufacturing industry is rising rapidly.
Chinese electric vehicle companies enter Europe, and Hungary has become the biggest beneficiary
In May 2023, the German newspaper Frankfurter Allgemeine Zeitung published a report on the European market for Chinese electric vehicles. The article said that as more and more cheap and advanced Chinese electric vehicles enter Europe, European Commission President Ursula von der Leyen has said that the EU is ready to impose punitive tariffs on Chinese imported cars.
In fact, Chinese automakers are actively responding to this challenge. They are setting up production sites across Europe to circumvent tariff policies. And in this process, Hungary has become the biggest beneficiary.
As more and more Chinese automakers set up in Hungary, the small Central European country is overtaking Germany as Europe's leading EV production base. According to reports, BYD has established its first European production base in Szeged, southern Hungary, and plans to produce 15-300,000 electric vehicles per year. In addition, Great Wall Motors is also building its first plant in Europe near Bised, Hungary.
Hungarian Foreign Minister Peter Szijjártó said that the arrival of these Chinese car companies will bring tens of thousands of jobs to Hungary and greatly enhance the status of the local auto industry. "It is vital that all aspects of the automotive industry, from production to research to service, are present in Hungary," he said.
In fact, this is only the tip of the iceberg of the layout of Chinese car companies in Hungary.
Hungary has overtaken Germany to become Europe's electric vehicle production hub
Driven by Chinese automakers, Hungary is accelerating to overtake Germany and become the leader in electric vehicle production in Europe.
Germany's Wirtschaftswortch reported that Hungary is already the leading car manufacturing base in Central and Eastern Europe. From Suzuki and Mercedes-Benz to Audi and BMW, many of the world's leading car companies have production bases in Hungary. Now, with the aggressive entry of Chinese automakers, Hungary is further strengthening this position.
In the field of electric vehicles, Hungary's advantages are even more prominent. BYD has established its first European production base in Szeged, southern Hungary. The plant will produce 150,000 to 300,000 electric vehicles per year for the European market.
Great Wall Motor also plans to build its first European plant near Bised, Hungary, to produce the mid-range brand Ora and the high-end brand Wey. Germany's "Economic Weekly" pointed out that this is another cornerstone of Hungary's strategy to become the dominant position of China's automobile industry in Europe.
In addition, Chinese battery giants such as CATL have also followed suit and laid out production bases in Hungary. CATL is reportedly building a 221-hectare battery plant in Debrecen that will supply automakers across Europe in the future.
It can be said that Hungary is overtaking Germany to become Europe's leading electric vehicle production center, driven by Chinese car companies. From vehicle manufacturing to the production of key components, Hungary has become an important fulcrum for Chinese companies to enter Europe.
Hungary's energy price advantage has helped Chinese automakers expand
In addition to the favorable investment environment in Hungary, Chinese automakers have been able to gain a foothold in Hungary thanks to the country's abundant energy resources and low energy prices.
Such an energy price advantage undoubtedly provides strong support for the production of Chinese car companies in Hungary. BYD, Great Wall and other car companies have built factories in the local area, which can significantly reduce costs and improve product competitiveness.
However, Hungary is also actively exploring other energy cooperation. Recently, Hungarian Foreign Minister Szijjártó said that Hungary has reached a preliminary consensus with China on nuclear industry cooperation, and will continue to deepen exchanges between the two countries in this field in the future. This will undoubtedly consolidate Hungary's energy advantages and provide a more stable energy supply for Chinese car companies to develop in the region.
Hungary's rise as a "bridgehead" for Chinese companies in Europe
To sum up, the aggressive entry of Chinese electric vehicle companies has helped Hungary become an emerging center of the European electric vehicle industry. This small Central European country is surpassing Germany at an astonishing speed and becoming an important strategic fulcrum for China's manufacturing industry in Europe.
Driven by Chinese car companies, Hungary's automotive industry is ushering in unprecedented development opportunities. From vehicle manufacturing to battery production, Hungary is becoming a key node for Chinese companies in Europe. More and more Chinese investment is pouring into the country, not only to create jobs, but also to breathe new life into the local economy.
It can be said that Hungary is becoming a "bridgehead" for Chinese companies to expand their territory and occupy the European market. This once obscure small country in Central Europe is now rapidly rising as an important microcosm of the globalization of China's manufacturing industry.
This is undoubtedly a thorny issue for the EU. Germany has long dominated the European automotive industry, but now faces a strong challenge from Chinese manufacturers. The European Commission has stated that it will impose punitive tariffs on Chinese cars, but the effect may be difficult to maintain.
Chinese companies are speeding up their deployment in Europe, and Hungary is undoubtedly a key part of it. This not only promotes the industrial upgrading of Hungary, but also proves once again that the strength of China's manufacturing industry is rising rapidly. In the future, it is undoubtedly worth watching closely how Chinese companies will continue to dominate the European market.