“The significance of vehicle manufacturing within the Hungarian economy is expected to not only remain stable, but also to improve”, the Ministry for National Economy’s Minister of State for Economic Development and Regulation István Lepsényi said in Budapest at a forum on the automotive industry, part of a series of “In Focus” conferences organised by the HG Media Group.

During his lecture entitled “Innovation Challenges Facing the Participants of the Hungarian Automotive Industry”, Mr. Lepsényi pointed out that the research and development requirements of vehicle manufacturing have increased dynamically recently, and accordingly the sector is expected to achieve the greatest share of R&D expenditure within a few years’ time.

The Minister of State pointed out that there are strong links between universities and large corporations in Hungary and vehicle manufacturing has set up shop in close vicinity to universities, with several areas related to the automotive industry appearing in science parks in Győr, Szeged and Kecskemet, for instance.

Mr. Lepsényi stressed that the Zalaegerszeg test track for self-driven and electric vehicles will provide a unique opportunity for attracting international research and development and enabling Hungary to provide the required services.

The Minister of State also spoke about the fact that Hungarian vehicle production has developed dynamically in recent years, its contribution to the national economy represents an outstanding value, and it plays an important role in both Hungarian exports and employment.

“The production volume of the vehicle manufacturing sector will increase in global comparison, in addition to which vehicles and supply chains will be transformed and the digital transformation will not only appear in the vehicles themselves, but also in vehicle production, and Hungarian suppliers must also be prepared for these rapid changes”, Mr. Lepsényi pointed out.

The Minister of State said establishing the infrastructure for the use of alternative fuels is an important talks, citing as an example the fact that there were only 300 purely electric cars on Hungary’s roads in 2015, but their numbers have since increased to around 1200-1300.

“Car dealerships must also come to terms with changes in marketing, with increasing demand for online car purchasing and a greater role being played by social media. Traditional car showrooms could disappear as a result of these changes, and virtual driving could become increasingly popular”, Mr. Lepsényi highlighted.

(Ministry for National Economy/MTI)