Headline Target: No sales of vehicles producing CO2 by 2035 (EU phase-out)

Car Manufacturing Country: Mercedes-Benz Group, Suzuki, Volkswagen AG.

Purchase Incentives for Cars: Individual purchase grants, registration tax exemption, vehicle tax exemption and property transfer tax exemption. Exclusive incentives: company tax exemption.

Supplier Regulation Policy: EU emissions performance standard (Tightening CO2 regime)

Infrastructure Incentives: None

Hungary joined the group of EU countries that opposed the 2035 phase-out of ICE vehicles, citing the fact that central and Eastern European countries would be the countries least likely to be able to make the transition, losing out on affordable vehicles. Since then, however, EV market share has continued to rise.

Hungary has started to embrace EV technology more thoroughly and has aligned itself with Chinese EV manufacturers despite rising tensions between the EU and China, viewing it as a way to get affordable EVs into the country quicker.

This has resulted in the Chinese manufacturer BYD choosing the country for the first Chinese manufacturers European hub. They have also got investment from companies such as Samsung and China’s CATL for their lithium battery supply chain