Electric Vehicles - Hungary

Hungary

In 2024, the projected revenue in Hungary's Electric Vehicles market is expected to reach US$808.3m.
Looking ahead, it is anticipated that the market will display a compound annual growth rate (CAGR 2024-2028) of 13.15%.
This growth will contribute to a projected market volume of US$1,325.0m by 2028.
Furthermore, the unit sales of Electric Vehicles market in Hungary are forecasted to reach 20.02k vehicles in 2028.
Within this market, the volume weighted average price of Electric Vehicles market in Hungary is expected to be US$67.7k in 2024.
It is worth noting that, on an international scale, in China is projected to generate the highest revenue in the Electric Vehicles market, with an estimated amount of US$319,000m in 2024.
Hungary is experiencing a surge in the adoption of electric vehicles, driven by government incentives and a growing charging infrastructure.

Key regions: United States, Germany, Netherlands, China, United Kingdom

Market

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Analyst Opinion

Hungary, like many other countries, has been witnessing a significant growth in the Electric Vehicles (EV) market.

Customer preferences: Customers in Hungary are increasingly showing a preference for electric vehicles due to several reasons. Firstly, the growing awareness about environmental issues and the need to reduce carbon emissions has led to a shift towards more sustainable transportation options. Electric vehicles offer a cleaner and greener alternative to traditional gasoline-powered cars, making them an attractive choice for environmentally conscious consumers. Additionally, the availability of government incentives and subsidies for purchasing electric vehicles has further encouraged customers to consider this option. The lower operating costs of electric vehicles, including reduced fuel costs and maintenance expenses, are also appealing to cost-conscious consumers.

Trends in the market: One of the key trends in the Hungarian EV market is the increasing availability and variety of electric vehicle models. Major automakers are expanding their electric vehicle offerings, providing consumers with more options to choose from. This trend is driven by the global shift towards electrification and the growing demand for electric vehicles worldwide. As technology continues to advance, electric vehicles are becoming more affordable, reliable, and practical for everyday use. The improving infrastructure for charging stations is also contributing to the growth of the EV market in Hungary, as customers feel more confident about the availability of charging facilities.

Local special circumstances: Hungary has a supportive regulatory environment for electric vehicles, which has played a significant role in the market's development. The government has implemented various measures to promote the adoption of electric vehicles, including tax incentives, exemptions from registration fees, and subsidies for purchasing electric vehicles. These policies have helped create a favorable market environment and incentivize consumers to switch to electric vehicles. Additionally, Hungary has a well-developed automotive industry, with several domestic manufacturers and suppliers actively involved in the production of electric vehicles and their components. This local expertise and infrastructure have contributed to the growth of the EV market in Hungary.

Underlying macroeconomic factors: The growth of the electric vehicle market in Hungary is also influenced by broader macroeconomic factors. The country's strong economic growth and rising disposable incomes have increased consumer purchasing power, making electric vehicles more affordable for a larger segment of the population. Additionally, the government's focus on reducing dependence on imported fossil fuels and promoting domestic energy production has created a favorable environment for electric vehicles. Hungary has made significant investments in renewable energy sources, such as wind and solar power, which align with the sustainable and clean image of electric vehicles. In conclusion, the Electric Vehicles market in Hungary is experiencing significant growth due to customer preferences for sustainable transportation options, the availability of government incentives, and the expanding variety of electric vehicle models. The supportive regulatory environment, local expertise in the automotive industry, and favorable macroeconomic factors have also contributed to the market's development. As these trends continue, the electric vehicle market in Hungary is expected to further expand in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).