Automotive investments in Hungary

Automotive_investments_in_Hungary.jpgThe Hungarian automotive sector is receiving new foreign investments as a French automotive supplier announced that it will invest 8 billion HUF in a city in western Hungary. Negotiations are already on the way between the Hungarian government and the French supplier for a second wave of investments.

Le Belier, investing in Hungary

Le Belier, a French automotive industry supplier announced that it will invest some 8 billion HUF (more than 26 million euros) in the city of Ajka, located in western Hungary. The Hungarian state and the EU will also support this investment project with some 507 million HUF during the first phase. Hungarian officials have already started to negotiate with Le Belier in order to begin another phase of investments.
The project relies on orders from important car producers from around Europe, most notably from one of the most important German car manufacturers. This new investment project is an opportunity for the development of the area and for Hungarian workers who can benefit from some 100 new jobs created in the Ajka area.
Le Belier is mostly known for its molded aluminium safety components for cars. The French Group provides complete services from producing prototypes to producing the machines parts. In Europe, Le Belier based is present in France, Hungary and Serbia. The company also has manufacturing sites in Mexico and China.

The Hungarian automotive industry

Le Belier is not the only international automotive manufacturer that opened offices in Hungary. Other well-known companies have chosen to open manufacturing units here, including Audi, General Motors, Mercedes-Benz, Suzuki or Opel.
The automotive industry is responsible for almost 20% of all of the Hungarian exports and has a production value of approximately 19%of the total industrial production. The main export market for auto parts and others is the European Union. There are about 700 companies in Hungary operating in the automotive field and between them they hire some 115,000 employees. 
Some of the reasons why important car manufacturers choose to base their manufacturing units in Hungary include a central location in Europe, cost efficient workers, a good tax system and a stable economic outlook.
For more information about investing in Hungary, you can contact our Hungarian law firm.