Hungary
In 2020 three million fewer cars were sold in the European Union when compared to 2019, a decrease 23.7%. A total of 9 942 509 new cars were placed on the market in the European Union in 2020 and 13 028 948 in 2019. A decrease was recorded in all 27 Member States. Sales fell by 27.9 percent in Italy, 25.5 percent in France and 19.1 percent in Germany. In line with the overall trend, the number of new cars sold in Hungary in 2020 decreased by 18.9 percent.
According to forecasts, Hungary’s car industry will hit pre-COVID 19 production levels in 2023. Analyst averages show a declining trend from month to month, and economic forecasts are based on a health forecast, which also includes a sense of optimism. According to initial forecasts, production was expected to drop by 28% by the end of 2020 (i.e. that is before adjusting for pandemic conditions).
Innovations and changes such as the CO2 standard, as well as alternative propulsion, self-driving, industry 4.0, digitalization and automation, are all revolutionizing the industry. In an effort to protect workers and to adjust to pandemic challenges, there have been many changes in the supply chain. Looking at the macro-processes, Hungary is focusing on restarting.
A global recession is expected, with the eurozone shrinking by 7%, according to median forecasts, it is anticipated that Hungary will be unable to avoid the crisis. According to central bank forecasts, a 4.1% decline in GDP is expected, and a less optimistic forecast could lead to a decline of almost 7%.
Entering the Hungarian market, U.S. companies need to use distribution, franchising and/or agency arrangements to guarantee procedures are in line with the laws of Hungary (and the European Union).
Hungary
Summary
Market Entry
Steel:
Commodity market in the steel market is dominated by China, of which the automotive sector is one of the largest steel consumers, but the epidemic also affected steel production (further exacerbated by the US-China steel market conflict).
Market Trends & Demands
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