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ELECTRO MOBILITY AND RELATED INDUSTRY DEVELOPMENT IN HUNGARY


Consumer demand for electro mobility follows a fundamentally different path than supply of related products. Widening the user base of electric vehicles in Hungary, having obvious advantages, does not trigger growth of local industrial activity. Economies of scale would encompass the total EU. Without proper industry development concept disadvantages and risks are present: lacking electro mobility related industrial capacities, dependence on fossil fuels are simply exchanged for dependence on imports of industrial goods, thus foreign exchange balance even worsens, value added of local companies do not increase, does not trigger R&D activities and does not affect local SME in any meaningful way.

This Top Tier Consultants study analyses and concludes that vehicle manufacturing in Europe has bounced back, especially due to increasing exports, with respect to size and profitability as well. Growth was concentrated to the CEE region ever since the latest economic crisis, profitability of market participants is at an all-time high. Therefore, any potential state support promises high returns in a growing and profitable industry.

Industry support related to electro mobility, as this TTC study concludes, is recommended to concentrate on automotive suppliers and the Commercial Vehicle industry so the impact of one Euro State support would provide the highest return on investment in Hungary, value added of local suppliers would increase, R&D activities would intensify and trade balance would improve.


The full study is available upon request

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