“The Government is providing three million forints (EUR 9.2 million) in non-returnable funding towards Austrian automotive industry company AVL Hungary Ltd.’s 12.5-billion-forint (EUR 38.5 million) regional development centre investment project in Érd”, Minister of Foreign Affairs and Trade Péter Szijjártó announced in Érd on Monday.

At the foundation stone laying ceremony of AVL Hungary Ltd.’s research & development centre, Mr. Szijjártó stressed that the Government is also supporting similar investment projects, amongst others, by the fact that it will be reducing the rate of social contributions tax by to percentage points beginning next week, and is introducing several measures to simplify tax administration.

“AVL’s investment project will create 350 new jobs, 253 of which require higher education diplomas”, he added.

“The dynamic development of the Hungarian automotive industry is indicated by the 11 percent growth posted for the first four months of this year, with which the sector’s production value reached 3220 billion forints (EUR 9.92 billion)”, he stated. “The production value generated by the sector has more than doubled over the past eight years, increasing from 4000 billion forints (EUR 12.32 billion) in 2010 to 8500 billion forints (EUR 26.19 billion) in 2018”, he continued, adding that 91 percent of production goes to export. “There are currently 173 thousand people working in the Hungarian automotive industry”, he pointed out.

Managing Director of AVL Hungary Ltd. Dirk Janetzko call the new centre a one of a kind in the world, adding that the company is working to reduce the pollutant emissions of motors with various drive systems. The Manging Director said that in his estimate 70 percent of vehicles will have hybrid drives by 2030 and 30 percent will be fully electric.

Mayor of Érd András T. Mészáros spoke about the fact that Érd is a half-complete city with a young, highly trained and increasing population, and with infrastructure opportunities and capabilities that few other cities have.