The Hungarian automotive industry is already adept in all technologies, and thanks to developments over the past decade and a half, it faces a secure future and could become one of the most important players in Europe, as has been said at the HIPA Automotive Conference 2026 in Budapest, where leading industry figures discussed the latest trends.

In his opening remarks, Government Commissioner and CEO of the HIPA Hungarian Investment Promotion Agency, Mr. István Joó highlighted that in 2025, more automotive industry investments were secured with the agency’s assistance than ever before. These projects, 27 in total, represent an investment volume of 1.1 billion euros and will create 3,600 new jobs. 

The HIPA CEO underlined that the long-term future of the Hungarian automotive industry is clearly secured. Domestic plants are already capable of “manufacturing anything”, vehicles powered by traditional internal combustion engines, as well as hybrid and electric vehicles. Thus, the next major phase of investment promotion is on the horizon, in which the government will once again seek partnerships with industry players. 

He explained that in this new phase, supplier collaborations with Hungarian-owned companies must be strengthened. To this end, the government is currently working on a new form of support specifically designed to encourage supplier partnerships. Research and development activities also need to be strengthened, and more automotive industry players should establish business service centers in Hungary. 

At the same time, the government is offering a partnership to the sector on the European Union stage, in the EU legislative process.  

We will continue to represent the interests of the Hungarian automotive industry in Brussels with the utmost determination; you can count on us in 2026, just as we count on you in the development of Hungary’s economy,

 - Mr. István Joó emphasized.

Minister of Foreign Affairs and Trade Mr. Péter Szijjártó stressed that  the interests of Hungary and the European automotive industry remain closely intertwined, and that their shared goal is to maintain competitiveness in a rapidly changing global economic environment. He added that the Hungarian automotive industry is built on a strong foundation and that, thanks to recent investments, the country has moved to the forefront of Europe.

The most important thing is to preserve Hungary’s peace and to remain steadfast in its policy of economic neutrality. 

"Peace is the natural environment for economic development,” and the government views cooperation between Western and Eastern companies as “the natural division of labor in the international economy”

- the minister pointed out.

Therefore, Hungary must continue to be a meeting point for automotive players from different regions. The government's goal is for the automotive industry to remain the backbone of the Hungarian economy in the future and for Hungary to maintain its dominant role in European vehicle manufacturing - Mr. Péter Szijjártó said.

In her opening remarks as the conference’s guest of honor, Ms. Adrijana Mesarovic, Deputy Prime Minister and Minister of Economy of Serbia, emphasized that her country has a well-developed automotive industry, and cooperation with Hungarian players in the sector could contribute to the stabilization of the entire region. She noted that, thanks to its lithium reserves, Serbia could also be an important source of raw materials for the sector. 

At a panel discussion with leaders from Hungary’s largest automotive companies, Mr. Michael Breme, Chairman of the Board of Management of Audi Hungaria, emphasized that, in addition to record high car production, exceeding 200 000 units, the company achieved outstanding results in 2025 also in engine manufacturing and in business services. Among the challenges, he mentioned the vulnerability of international supply chains. 

In this regard, Mr. Hans-Peter Kemser, Director of the BMW Group’s Debrecen plant, highlighted that BMW is striving to shorten supply chains and implement the “local for local” strategy, so, for example, the battery cells for the electric cars manufactured at the Debrecen plant come from a neighboring factory located just 500 meters away. 

Ms. Penny Peng, BYD’s Head of European PR and Marketing, noted, among other things, that the Chinese giant is pursuing a “globalization” strategy, under which, in addition to the Szeged project, their first European manufacturing base, the company expanded production at its Thailand plant last year and launched its Brazilian factory.

Mr. Jens Bühler, head of the Mercedes-Benz plant in Kecskemét, touched on the possible future of automotive manufacturing technologies, noting that humanoid robots may also appear in the sector. As he said, he suspects that many players are testing such robots, which could represent a significant opportunity to strengthen competitiveness. 

Also in connection with the transformation of manufacturing technology, Ms. Olívia Mesics, head of Stellantis’s engine manufacturing plant in Szentgotthárd, explained that the rise of digitalization, the rise of solutions based on artificial intelligence and the Internet of Things (IoT) also entails serious cybersecurity risks that must be managed at every point in the production and supply chain.   

Mr. Fumito Sakai, the new CEO of Magyar Suzuki Zrt., noted regarding the company’s results that Suzuki was the market leader in Hungary for the 22nd time last year. Regarding the proposed new EU regulations, he noted that while the European Commission’s proposal, requiring at least 70 percent of components other than the battery to be manufactured within the EU, is feasible, however, such requirements will undoubtedly make cars more expensive. 

Also regarding the proposed EU rules, Ms. Sigrid de Vries, Director General of the European Automobile Manufacturers’ Association (ACEA), emphasized in her presentation following the panel discussion that a pragmatic approach is needed, and that carbon dioxide reduction targets must be achieved in accordance with the principle of technological neutrality. 

Mr. José M. Asumendi, a senior automotive industry analyst at J.P. Morgan, the largest U.S. bank, explained that Hungary’s performance was a “pleasant surprise” to him. The Hungarian automotive industry is already among the top ten in Europe in terms of vehicle production capacity and could even make it into the top five in the coming years.

 As he said, Hungary plays a particularly important role in helping the European automotive industry adapt to global competition, especially the rise of Chinese manufacturers. He added that Hungary is a central hub for the transformation strategies of major automakers and could develop into one of the key hubs for European vehicle manufacturing in the coming years.