lh x cw market report A4_23.03.02 v34 interactive72

REGIONAL LOGISTICS AND MANUFACTURING IN HUNGARY

Regional logistics in Hungary is driven mainly by the German automotive industry and generates a continuous demand for industrial space throughout the country.

The industrial hotspots of car manufacturing and parts supply are Győr (Audi), Kecskemét (Daimler Mercedes) and Debrecen (BMW), but the automotive industry is also represented in Esztergom (Suzuki) and Szentgotthárd (Stellantis). Existing locations are a magnet for automotive suppliers and this demand is likely to continue in the coming years.

Hungary is an important location for battery manufacturers and their suppliers, with the main manufacturers being Samsung SDI (Göd), SK Innovation (Komárom) and Inzi Controls (Komárom). In Debrecen, CATL is setting up a huge factory which will be operational in five years at the latest.

These brands operate mainly from owner-occupied schemes, and their presence catalyses build-to-suit developments in their surroundings. These hotspots are usually occupied by direct suppliers to the main plant. Manufacturing plants in Hungary are scattered throughout the country, often encouraged by state subsidies and attracted by significantly lower labour costs than in Budapest. As a result, most manufacturing brands are owner-managed and not part of the Hungarian institutional stock.