EV cluster Hungary? Co-location and co-evolution of German OEMs and Asian EV investors and the transformation of Hungary’s and Europe’s automotive value chains

Authors: Tamás Tibor Csontos, Andrea Éltető, Ernő Molnár, Magdolna Sass

In: Series Perspective, Friedrich-Ebert-Stiftung Büro, Budapest

Abstract

This study examines how the co-location of German automotive manufacturers and Asian battery producers is reshaping Hungary’s position in European electric vehicle value chains. Drawing on industry data, stakeholder interviews and case studies, it shows that Hungary has attracted major investments while retaining strong external technological dependence and limited domestic value capture. The authors identify “strategic overshooting”: capacity expansion outpacing infrastructural, environmental and institutional capacities. They argue for a shift from investment volume towards stronger domestic supplier capabilities, innovation, improved labour and environmental standards, and better coordinated Hungarian and European industrial policies.