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Hungarian Investment and Trade Agency Automotive I ndustry in Hungary 2014

Hungarian Investment and Trade Agency Automotive I ndustry in Hungary 2014. Hungary: h ome of a utomotive i nvestments.

roanna-abbott
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Hungarian Investment and Trade Agency Automotive I ndustry in Hungary 2014

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  1. Hungarian Investment and Trade Agency Automotive Industry in Hungary 2014

  2. Hungary: home of automotive investments • AudiHungaria Motor Kft. in Győr produces engines for all brands in the VW Group and has a brand new production plant for A3 Cabriolet and A3 Limousine, together with the new generation of TT Coupé and TT Roadster. • Mercedes-Benz Manufacturing Hungary Kft. has picked Hungary as its first plant in Eastern Europe, producing the Mercedes B and CLA models. • Magyar SuzukiZrt. has assembly lines in Esztergom, producing Suzuki Swift, Splash, SX4 and SX4 S-Cross. • Opel Szentgotthárd Kft. produced Opel Astra cars at the beginning, afterwards they manufactured engines, cylinder heads, crankshafts and piston-rods. H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  3. Overview: major OEMs in Hungary AUDI Hungaria Motors Kft. Location: Győr Mercedes-Benz Manuf. (Daimler) Location: Kecskemét Magyar Suzuki (Suzuki Motors) Location: Esztergom Foundation: 1991 Products:Swift, Splash, SX4 S-Cross Car. prod. cap.: 300.000 Nr. of employees: 3.100 Revenue (2012): EUR 1,4 billiion Foundation: 1993 Products: TT Coupé/Roadster, A3 Cabriolet/Limousine Car. prod. cap.: 125.000 Engine prod. cap.: 1.900.000 Nr. of employees: 10.300Revenue (2012): EUR 5,282 billion Miskolc Nyíregyháza Esztergom Győr Hatvan Debrecen Tatabánya BUDAPEST Szolnok Szombathely Székesfehérvár Szentgotthárd Kecskemét General Motors Powertrain (GM) Location: Szentgotthárd Szeged Foundation:2008 Products:A and B Class, CLA Car. prod. cap.: 150.000 Nr. of employees: 3.000 Revenue (2012): EUR 0,92 billion (Operation started in March 2012) Pécs Foundation: 1991 Products:engines, cylinder heads, gearboxes Engine prod. cap.: 1.000.000 (2015) Nr. of employees (expected): 1000 (1,500 - 2015) Revenue (2012): EUR 86,7 million H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  4. Facts and figures • Production value : 19.4% oftotal industrial production • Automotive industry gives20% of Hungary’s total exports (16,65 bn EUR in 2012 ) • Main export market: EU (75 %) • No. of companies: cca. 700 • No. of employees: cca. 115,000 • Average gross salary: 824 EUR/month (Eurostat, 2013 June) • Forecast: more than 2,3 million engines and 400.000 passenger cars will be manufactured in Hungary in 2014 H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  5. Top reasons for Hungary I. • Central location At the crossroads of 4 main European transportation corridors - Ideal logistical center for the automotive industry (More than 90% of Hungary’s automotive production goes for export) • Cost efficiency • Competitive wages and labor cost/value ratio in European comparison in the CEE region. • Tradition of innovation • Long and successful tradition of cooperation between the universities and the producers in R&D. • Long-term planning • Solid political and public institutional framework • Stable economic outlook • Harmonized tax system H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  6. Competitive average wages Source: wiiw, Eurostat, national statistics H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  7. High average yearly working hours (2012) H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  8. Gross wage levels in European cities New York=100 (2012) Source: UBS, Wealth Management Research, Prices and Earnings, 2012 September H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  9. Automotive competence centers Competencies in the Regions – Alignment of the Academic and Industrial Main Priorities • Győr(engine, vehicle manufacturing) • Veszprém(mechatronics, fuels and lubricants) • Budapest (vehicle technology, electronics, mechatronics) • Kecskemét(material sciences, vehicle assembly) • Miskolc(driveline systems, mechatronics) H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  10. Top reasons for Hungary II. • Strong supplier base: • Over 700 companies in the automotive sector • 15 of the 20 leading Tier 1 companies settled down in Hungary • Hungarian automotive suppliers have several years of experience supplying OEMs & Tier 1s • Strong governmental supplier development activity • Extended vertical and horizontal supplier connections H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  11. Hungary: home of automotive investments And many more… Tier 1 Tire man. OEM R&D H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  12. More than 700 suppliers Northern Hungary Central Hungary Northern Great Plain Central Transdanubia Western Transdanubia Southern Great Plain Southern Transdanubia

  13. Light vehicle production in the Central and Eastern European Region (in thousand units) Source: Ernst & Young, The Central and Eastern European automotive market, 2010 H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  14. About the Hungarian Investment and Trade Agency - HITA • Founded by the Hungarian Government in 2011, in order to assist in achieving its external economic policy goals • The supervising body of HITA is the Prime Minister’s Office • 150 employees, mainly consultants on sectorial basis Our main tasks are: • Support the foreign trade activities of Hungarian undertakings • Training of SMEs enabling them to be involved into multinational companies’ supply chain • Organizational Structure • Investment Promotion Directorate • Business Development Directorate • Enterprise Europe Network (EEN) H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  15. Our services for successful investments Ramp-up Pre-decision Operations • Tailored and comprehensive information packages on the economy, financial incentives, business environment, tax • Assistance in location search and evaluation, site visits organized • Partner meetings organized • Project partner and project financing advisory • Supplying information on permitting procedures • Assistance in applications for incentives • Expansion assistance • Advocacy to improve the business climate H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  16. Our services for successful investments: Incentives • Services of the Incentives Department: • EU co-financed tenders • Subsidy based on individual government decision • Development tax allowance • Job creation subsidies • Training subsidy H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  17. Our services for successful investments: Supplier Department (I.) • Regular personal meetings with management for setting up and reviewing supply strategy and project plan • Longlisting business contacts about possible Hungarian suppliers • Parametering the possible Hungarian suppliers • Prefiltering business contacts for the OEMs • Shortlist business contacts to maximize the chance of the successful cooperation H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  18. Our services for successful investments: Supplier Department (II.) • Match-making between the OEM and the suppliers • Business Seminars, Conferences, Supplier Days, Shows & Exhibitions • On request establishing business relationship • On request consultancy with other governmental organs • Follow-up meetings • Building interactive supplier database and e-market service H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

  19. Thank you for your kind attention! Contact us: Web: www.hita.hu E-mail: investment@hita.hu Phone: +36 1 872-6520 H-1055 BUDAPEST, HONVÉDUTCA 20. PHONE:(+36) 1 872 6520 FAX: (+36) 1 872 6699

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