Boosting the automotive industry is a complex task involving manufacturers, suppliers, the energy sector, R+D, the government and municipalities alike, Varga noted, adding that Hungary’s capabilities in these areas were strong, but slow reaction times could set the country back in the race for global advantage.

The minister said that the government is to spend 3 billion euros on R+D+I. A substantial part of this sum will also flow into the automotive industry, he said.

The government has designated auto industry centres in the country and launched dual vocational training, coupling theoretical with practice training in major plants, Varga said.

A record low unemployment rate, continuously rising wages and a stable budget are also creating a favourable environment, Varga said. Hungary’s auto industry accounts for 20 percent of the country’s exports and employs almost 170,000 people. Output in 2016 amounted to 25 billion euros, he noted.

The greatest challenge of the coming years will be developing 5G technologies and electromobility, he added.

Republished with permission of Hungary Matters, MTI’s daily newsletter.

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