The Chinese automotive company Xinzhi has announced plans for a €121 million investment in Hungary, which will generate almost 900 new jobs in Hatvan, approximately 60 kilometers east of Budapest. The new plant will focus on producing key components for electric motors, further solidifying Hungary's position as a leader in the global electric vehicle transformation, according to Hungarian Foreign Minister Péter Szijjártó.
In a statement to MTI, Szijjártó highlighted the project’s significance, noting that the investment includes not only manufacturing but also advanced research and development (R&D) activities. "Xinzhi will hire 30 highly qualified engineers to spearhead R&D, adding immense value to Hungary’s role in EV innovation," he said.
He emphasized the importance of this project for Hungary’s economy and the EV industry: "The electric car industry is still in its early stages, and research and development play a pivotal role in shaping the sector. This investment brings high added value in innovation, strengthening Hungary’s position as a global automotive renewal leader."
Szijjártó concluded by saying, "This is excellent news for Hatvan, the region, and Hungary’s economy as a whole. With a strong start to 2025, Hungary is on track for a successful economic year."
This investment from Xinzhi is the latest in a series of high-profile Chinese projects in Hungary.
- CATL: The Chinese battery giant CATL announced a major investment in 2022, building its second European battery factory in Debrecen. The first phase of the project is complete, with production set to begin in 2025.
- BYD: In 2023, BYD, the world’s largest manufacturer of new energy vehicles, committed to establishing its first European car plant in Szeged. This multibillion-euro investment is expected to produce 300,000 cars annually, with the first vehicles scheduled for completion in November 2025.
Minister Szijjártó underlined the broader context of Europe’s declining competitiveness, arguing that the continent must capitalize on the electric vehicle transition to halt economic stagnation.
"Hungary is at the forefront of this transformation, serving as a hub for global automotive innovation and renewal," he added, citing these investments as proof of Hungary's pivotal role in advancing EV technology.
With Xinzhi’s investment and Hungary’s growing status as a leader in EV manufacturing and research, the country continues to attract strategic foreign investments that drive economic growth and innovation.
