Hungary is fully committed to fostering strong cooperation between German car manufacturers and Eastern suppliers, a crucial factor in the success of the electric vehicle (EV) transition, according to Minister of Foreign Affairs and Trade Péter Szijjártó recently. 

Following talks with Andreas Radé, Managing Director of the German Association of the Automotive Industry (VDA), and Thomas Schwarz, Head of the Audi Representative Office in Berlin, Minister Szijjártó highlighted the profound technological transformation currently taking place in the automotive industry. German automakers are investing heavily in the shift towards electric vehicles, with tens of billions of euros directed towards research and development (R&D) for the electric transition.

“Hungary is a prime example of how this transformation can succeed both nationally and at the company level, provided that international trade remains free and economic cooperation is unimpeded,” Szijjártó stated. He warned that obstructing East-West business collaboration would threaten this progress.

Criticism of EU’s Proposal on Chinese Car Tariffs

Szijjártó also criticized the European Commission's recent proposal to impose tariffs on Chinese car manufacturers, arguing that it undermines free trade and competition within the automotive industry. "This proposal could hurt the European economy more than it helps," he said, emphasizing that Hungary, during its upcoming EU presidency, will advocate for meaningful and mutually beneficial East-West cooperation.

He pointed out that in Hungary, German car manufacturers collaborate successfully with partners from China, South Korea, and other Eastern nations. Hungary is unique in hosting all three major German premium car manufacturers—Audi, BMW, and Mercedes-Benz—alongside five of the ten largest Eastern battery producers.

Strategic Cooperation with German Companies

Minister Szijjártó stressed that Hungary is well-positioned to facilitate this East-West cooperation, which bolsters the Hungarian economy and supports thousands of jobs. He emphasized the long-standing economic ties between Hungary and Germany, noting that Germany has been Hungary's largest trading partner for years. In 2023, bilateral trade hit a record high, exceeding 70 billion euros. German companies have also been the largest investors in Hungary.

"The Hungarian government has signed strategic cooperation agreements with 16 German companies and supported investments from 201 German firms over the past decade, creating nearly 40,000 new jobs," Szijjártó highlighted.

Hungary’s Role in the Electric Vehicle Transition

Szijjártó further underlined that the future success of the electric vehicle transition relies on free and open East-West cooperation, with competition at its core. "The German car industry has clearly chosen Hungary as a key partner in this transition," he concluded.

By maintaining an open market and fostering collaboration across borders, Hungary continues to play a pivotal role in driving the automotive industry's shift to electric vehicles, benefiting both the national economy and the broader European market.