Another Chinese Automotive Investment in Hungary

A HUF 50 billion investment by the Chinese automotive company Xinzhi in Hatvan, east of Budapest, will create almost 900 new jobs, according to the Hungarian Ministry of Foreign Affairs and Trade.

In a statement sent to MTI said on Monday, Minister Péter Szijjártó announced that Xinzhi, a market leader in the production of one of the most important basic components for electric motors, has decided to build its next plant in Hungary. He was of the view that the investment further strengthens Hungary's position in the global market of electric vehicle industry transformation. No information was released regarding what share of the investment is covered by Hungarian taxpayers through state support.

"The electric car industry is still at an early stage of its development, so research and development really have a big role to play now, so Hungary has been able to attract not only a major new production capacity, but also a research and development capacity with a particularly high added value in the field of innovation," he was quoted as saying.

The minister was of the opinion that Europe's economic competitiveness and security have also deteriorated a lot in recent years, and the best way to stop this economic downturn would be for the continent to strengthen its role in the electric car transition and not to pass on this opportunity to others, he claimed.