Hungary: leading Europe’s EV battery investment rush

Hungary’s automotive sector is much more than a satellite production location for Audi, Mercedes and (soon) BMW and BYD, as well as the European home to Suzuki’s only European vehicle operations. Production in 2023-2024 was 450-460,000 units, and this should approach 600,000 once the BMW plant is fully operational, and 800,000 once the BYD plant is open as well. Output could be even higher if the Mercedes and Suzuki plants fill their capacity. The country’s vehicle export value was just over US$4bn in 2024, most of which went to Germany, the Czech Republic and Austria, for onward distribution rather than immediate consumption in the case of the latter two markets.

However it is battery production, and indeed battery components and not just battery assembly, in which Hungary is developing a significant presence.