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Further Increase in the Automotive Sector’s Contribution to GDP Essential

MTI-Hungary Today 2023.11.08.

Hungary’s international working capital currently exceeds EUR 100 billion, and the government plans to double this figure by 2030, the Minister of Economic Development said at an event celebrating the 30th anniversary of Audi Hungaria in Győr (north-western Hungary), where the series production of the new generation of the electric engines has now started.

The minister stressed that the role of Western and Eastern capital is important in increasing the amount of foreign direct investment (FDI), therefore Hungary is striving to become a meeting and interconnection point. As a result of this, exports as a share of GDP could reach 100 percent by 2030, he said, adding that the goal is to reach 90 percent of the EU’s development by the end of the decade.

Márton Nagy speaking at the event. Photo: MTI/Bodnár Boglárka

Márton Nagy stressed that

there are three prerequisites for attracting FDI: sufficient and cheap energy for production, a sufficient and skilled workforce, and further development of infrastructure.

He explained that the country’s electricity consumption will increase, requiring cheap green energy. To this end, the Paks II nuclear plant should be built and the installation of solar panels should be accelerated. Moreover, on the regulatory and fiscal side, the development of storage capacity for residential and industrial-scale businesses should be supported.

He pointed out the need to increase the number of workers, mainly by attracting more young people. It is the government’s policy that as long as vacancies can be filled by Hungarian workers, Hungarian workers should be employed. Third-country nationals may reside in Hungary only for a specific purpose and for a specific period. This will also be the purpose of the new, stricter domestic rules, the minister added.

Nagy also explained that in order to exploit the logistical potential in the country, the infrastructure should be further developed, motorways should be built, railways should be upgraded, air transport should be strengthened, and water transport should be expanded.

These could increase the added value of the logistics sector from five to ten percent of the GDP.

As he said, the automotive industry is the engine of domestic growth, employing nearly 100,000 people in the automotive sector and 150,000 people in the transport sector. The production value of the automotive sector as a percentage of GDP is currently 20 percent, but could rise to 30 percent in the medium term.

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Vehicle and high-tech battery manufacturing is an integral part of the Hungarian economy, with more than HUF 6,300 billion (EUR 16.6 billion) of development in the sector in the coming years, creating 20,000 new jobs,

he emphasized.

He added that Hungary is now building an ecosystem for electric car manufacturing, and that

Audi Hungaria will also produce electric cars by the second half of the decade.

Audi Hungaria is planning a further EUR 54 million worth of projects this year. The state is examining them and is open to supporting these projects, he said.

Commenting on the start of series production of the new generation of electric propulsion engines, Alfons Dintner, Chairman of the Board of Management of Audi Hungaria, noted that the company was continuing to prepare for the era of electromobility by starting production of these engines. He added that EUR 190.2 million had been invested in the production of engines for the Audi Q6 e-tron models.

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Via MTI, Featured image: Facebook/Audi Hungaria Győr

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