Hungary Autos Report Q3 2010: New research report available at Fast Market Research

May 26, 2010 - PRLog -- The slide in the number of new autos on the road in Hungary does not show any signs of easing. In Q110, new car registrations fell 55% over the year-ago period to 10,210, according to the Budapest Business Journal, which cited data from the Hungarian association of vehicle importers (MGE). LAszlo UrbAn, the deputy CEO of Magyar Suzuki, the Hungarian subsidiary of Suzuki Motor, has described sales as 'shockingly low'. According to realdeal.hu, he said in March that only 9,000 of the 180,000 vehicles it manufactured in the country last year were sold domestically. He added he does not expect sales in the country to show any improvement in 2010.

The economy contracted 6.3% in 2009, and although many economists believe the economy is past its worst, output is forecast to decline by 0.1% in 2010. Economic growth is not expected until 2011. Given the obstacles faced by Hungary's economy, BMI is forecasting a 10.7% year-on-year (y-o-y) drop in sales in 2010 to just over 142,000 units. We do not expect sales to achieve pre-crisis levels by the end of the forecast period.

For vehicle producers, output has declined amid a slump in demand in Hungary's main export markets. This has been a problem that has hit the entire manufacturing sector. Manufacturers such as Audi Hungaria recorded a nearly 50% drop in vehicle output in 2009, marking the first time in the automaker's history that it saw its annual production figures fall, according to the Budapest Business Journal. But in an encouraging sign, Audi Hungaria's 2010 production as of the end of February had reached 300,000 engines and 6,000 vehicles - figures that are comparable to pre-crisis levels - The Budapest Times reported.

BMI expects it will take time for production to recover - and the road ahead for manufacturers could be bumpy. We do not see a rise in total vehicle production levels until 2011. But growth should pick up towards the end of the forecast period. We anticipate production rising to 415,193 units by 2014, versus an estimated output of 269,053 units in 2009. Part of the reason we believe production will bounce back is because of the incentives and subsidies being offered by the government, which is attracting fresh investment to the Hungarian market.

The Hungarian government has approved a HUF22.15bn (US$110.7mn) 'direct, non-refundable' subsidy to Germany's Daimler, Portfolio.hu reported in April. The subsidy will aid the building of Daimler's manufacturing facility in the country, the report said. Daimler decided to construct the facility in Kecskemet in October 2008 after examining similar sites in Poland and Romania and believes that Hungary's location would boost competitiveness and allow it access to Eastern European markets where there is rapid growth in demand for entry-level luxury cars. According to Daimler's estimates, the new plant will entail total investment of EUR800mn (US$1.07bn) between 2008 and 2012. The Hungarian government's subsidy will offset about 10% of the automaker's costs. Portfolio.hu the plant is expected to create up to 2,500 direct jobs when operating at full capacity of 100,000 cars a year.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/61103_hungary_autos_report_q3_...

Report Table of Contents:

Executive Summary
SWOT Analysis
- Hungary Auto Industry SWOT
- Hungary Political SWOT
- Hungary Economic SWOT
- Hungary Business Environment SWOT
Regional Overview
- Crisis At Toyota
- Toyota Vehicle Recall Timeline
- Toyota's European Dream
- Opportunities For Some
- Risk To The Industry
Business Environment Ratings
- Table: Western, Central And Eastern Europe Business Environment Ratings
Industry Forecast Scenario
- Production
- Sales
- Production And Sales
- Trade
- Trade
Macroeconomic Forecast Scenario
- Table: Hungary - Economic Activity, 2007-2014
Competitive Landscape
- Fresh Investment
- Industry News
- Commercial Vehicles
Company Monitor
- PSA Peugeot Citroen Regional Profile
- Financial Woes
- Focus On Faurecia
- Merger Opportunity
- Eye On Eastern Europe
Company Profiles - Manufacturers
- Magyar Suzuki
- Audi Hungaria Motor
Company Profiles - Suppliers
- Raba Jarmuipari
- Delphi Automotive
Country Snapshot: Hungary Demographic Data
- Section 1: Population
- Demographic Indicators, 2005-2030
- Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Education, 2002-2005
- Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Employment Indicators, 2001-2006
- Consumer Expenditure, 2000-2012 (US$)
- Average Annual Wages, 2000-2012
BMI Methodology
- How We Generate Our Industry Forecasts
- Sources

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