Hungary Confirms Plans for Great Wall Motors Electric Vehicle Factory

Hungarian Minister for National Economy Marton Nagy confirms plans to establish a factory for Chinese automaker Great Wall Motors in Hungary. The announcement comes during a conference in Budapest focused on cooperation between China and Hungary under the Belt and Road Initiative (BRI) framework.

Why this matters: This development marks a significant milestone in the growing economic ties between Hungary and China, with potential implications for the global automotive industry and Europe's electric vehicle market. The factory's establishment could also have a ripple effect on the region's economy, creating new jobs and attracting further investment.

At the event, co-hosted by Xinhua News Agency and Hungary's ATV Media Group, Nagy highlights the fruitful results of Belt and Road cooperation between the two countries. He cites the Hungary-Serbia railway project as a prime example of successful collaboration.

Nagy emphasizes the significant impact of Chinese investment in Hungary, stating, "Investment from Chinese companies, including Bank of China, CATL, and BYD, has been driving the development of related industries." He expresses Hungary's willingness to strengthen mutually beneficial cooperation with China in areas such as infrastructure and high-tech, positioning the country as a link between China and Europe.

The conference, which attracts around 200 participants from both countries, aims to further implement the consensus reached by leaders of China and Hungary and promote pragmatic cooperation at various levels. During the event, Xinhua News Agency inaugurates an Eastern European liaison office for the Belt and Road Economic Information Partnership (BREIP), and a report on investment and cooperation between the two countries under the Belt and Road framework is released.

The planned Great Wall Motors factory is expected to be situated on a 600-hectare industrial zone in the village of Bicsérd, approximately 5 kilometers west of the city of Pecs. Great Wall Motors, currently the eighth-largest Chinese automaker, sold 1.3 million units in 2021 and has three bases in China. The Hungarian factory will be the company's first in Europe and is expected to produce the Ora Funky Cat hatchback model and a premium saloon called Wey.

The announcement of the Great Wall Motors factory in Hungary coincides with Chinese President Xi Jinping's planned visit to the southwestern city of Pecs between May 8-10. Hungarian media speculate that President Xi may personally announce the factory during his visit, underscoring the significance of the project for both countries.

The establishment of the Great Wall Motors factory in Hungary marks a significant milestone in the country's automotive industry and highlights the growing economic ties between Hungary and China. The first European production base for the Chinese automaker is expected to create new jobs, attract further investment, and contribute to the development of electric vehicle manufacturing in the region.

Minister Nagy's confirmation of the factory plans highlights Hungary's commitment to strengthening its partnership with China and positioning itself as a key player in the Belt and Road Initiative. The project's progress, impact on the local economy, and broader implications for Sino-Hungarian relations and the future of electric vehicle production in Europe will be closely monitored.

Key Takeaways

• Hungary to establish Great Wall Motors factory, China's first in Europe.
• Factory to produce Ora Funky Cat and Wey models, creating new jobs and investment.
• Project strengthens Hungary-China economic ties under Belt and Road Initiative.
• Chinese President Xi Jinping may announce factory during Hungary visit.
• Factory to contribute to electric vehicle manufacturing growth in Europe.