Hungarian automotive industry: week 36
Last week saw improving industrial outputs and a better-than-expected GDP growth in Hungary. In automotive news, Suzuki´s latest model received the Hungarian Quality Product award and the 100,000th Mercedes-Benz CLA was made in Kecskemét.
Manufacturers
This year, 63 Hungarian firms are included in the Deloitte Top 500 ranking with a total consolidated income of EUR 91 billion.
This year, Audi Hungaria Motor Kft. improved three positions from 19th place registered last year, ranking 16th and being the largest company in the region.
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| 100,000 CLAs from Kecskemét, Hungary |
The CLA, manufactured exclusively at Mercedes-Benz Kecskemét, is already one of the German brand's most popular models. Recently, the 100,000th CLA has been sold.
The SX4 S-CROSS has been awarded with the prestigious ‘Hungarian Quality Product’ certificate, and also received the Business Press Award donated by the Association of Hungarian Journalists (MÚOSZ).
After the Splash and the 3rd generation Swift, it is the third Magyar Suzuki-produced model to have merited the prestigious award.
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| SX4 S-Cross receives Hungarian Quality Product award |
The certificate is awarded in recognition of such driving forces of competitiveness as know-how, innovation and quality. The 17th Hungarian Quality Product Award ceremony was held at the Parliament in Budapest.
We drove the Adam Rocks, fitted with the latest turbocharged engine from Szentgotthárd, Hungary, in Latvia. The 1.0-litre turbocharged engine, producing 115bhp, is a perfect match for the small Opel.
Last week we also tested the Citroen Cactus, debuting several technical features we hadn't seen before.
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| Opel Adam Rocks, powered by the latest engine from Szentgotthárd |
Suppliers
Felsőzsolca-based Sicta Kft. has completed the development of a new turbocharger housing, meeting the strictest environmental standards. The company is planning to produce 58,000 units of the component, manufactured using the latest precision die-casting technology, every year.
Sicta said in a press release that the company is currently making turbocharger housings for three OEMs, and is planning to expand its customer base and workforce thanks to the development.
Esztergom-based automotive parts manufacturer Kirchhoff Hungária Kft. has expanded its welding shop by 50 percent.
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| Kirchhoff expands welding shop in Esztergom |
TechTogether
Only two months are left until TechTogether student competition, organized by our site. Between November 5 and 7, eight university teams will compete with each other at the event, held within the scopes of Automotive Hungary 2014.
Last week we presented one of teams, SZE Arrabona Racing Team from Győr-based Széchenyi István University. The team was the first FS team in Europe who developed and built and engine optimized for the Formula Student series.
Pepp-Air, the team from the University of Szeged, will present a pneumatic air-powered vehicle at TechTogether, to be held at Hungexpo.
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| The pneumatic car built by Pepp-Air |
Industry
In July 2014 – according to preliminary data – industrial gross output rose by 12.3% compared to the same month of 2013, reported Hungary's Central Statistical Office (KSH).
The volume of industrial production in July – according to seasonally and working-day adjusted indices – was above the level of the previous month by 1.6%. Year-on-year, output grew by 9.8% in the first seven months of this year, reported KSH.
The driver of growth was mainly automotive production and related sectors. Q3 is showing promising results, although the base effects are keeping the growth rate lower. Even though the automotive industry still has unused capacities, the growth will slow down, while the basic processes will remain favourable.
GDP
Although the GDP growth of 3.9 percent registered in Q2 is higher than it had been previously expected, analysts say a growth of 3.3 percent can be expected for the whole of the year as growth will slow down in the second half. ING Bank analyst András Balatoni pointed out that Hungary's economy was run at full speed in the first half this year.
The last time such a significant growth in GDP was registered was in Q1 2006, in the year of the elections, he added. Economic growth will probably slow down in the second half, Balatoni said.
Gergely Gabler, senior analyst at Erste Bank, said that Hungary's economy grew at a higher rate than previously expected. He said that the exceptional results registered in the first half will be followed by a slower growth rate in the next quarters.
Funding for Growth Scheme
The financial framework available for the Funding for Growth Scheme, launched by the National Bank of Hungary (NBH), has been doubled since the programme was first started, announced NBH.
Crisis in Ukraine
Hungary's economy could also suffer from the conflict between Ukraine and Russia, although measures expected to be taken in connection with foreign-currency loans can decrease Hungary's economic vulnerability, London analysts say.
The analysts of Bank of America-Merrill Lynch said that after a strong GDP growth registered in the first half, a GDP increase of 3 percent is expected for the whole of 2014. The analysts are expecting a significant decrease in Hungary's GDP growth for the second half.
The analysts of Bank of America-Merrill Lynch added that the conflict in Ukraine could decrease Hungary's economic growth by 1 percentage point in 2015 compared to 2014.
