Will Hungary see automotive growth in 2026?

20 February 2026

Following three years of economic underperformance and uncertainty, Hungary faces a challenging 2026. Barnabás Kovács, head of valuations for Hungary at Autovista Group, explores the numbers with Autovista24 editor Tom Geggus.

Industrial production and investment in key sectors continue to be strained. High energy prices and taxation have put extra pressure on businesses. Meanwhile, households are struggling with affordability. Higher costs, perceived inflation, and economic uncertainty have led consumers to save rather than spend where possible.

After three consecutive years of weak GDP performance, the country’s economy is expected to grow by to 2.4% in 2026. This could support a modest recovery in consumer demand.

The National Bank of Hungary (NHB) confirmed the average rate of inflation in the country was 4.4% across 2025. This year, the institution expects inflation to rise by 3.2%.

Interest rates were cut to 6.5% in September 2024, and no changes have been made since then. ING believes the NHB could cut rates down to 6.25% on 24 February, with another cut to 6% possible in March.

Regarding financing, the most competitive car loans on offer currently come with approximately 10% interest. Meanwhile, some higher rates are closer to 18%. Dealers long for lower rates of between 3% and 5%, which would encourage a more promising market.

Registration growth continues in Hungary

Thanks to lower results in the early 2020s, the Hungarian new-car market continued to record growth in 2025. Passenger car registrations increased by 6.4% year on year to 129,440 units, as confirmed by ACEA. This was 20.1% higher than in 2023.

Pure internal-combustion engines (ICEs) and mild hybrids (MHEVs) continued to dominate the market. The fuel types accounted for 70.8% of all new-car sales. Meanwhile, full hybrids (HEVs) took a 14.8% share. Suzuki maintained market leadership over these powertrains with locally produced models, followed by Toyota and Skoda.

New EV growth in Hungary

Hungary’s BEV market saw significant growth, with sales up 28.5% year on year and a share of 8.5%. All-electric demand was boosted by various incentives. This included purchase subsidies, as well as company tax, registration tax and ownership tax benefits, according to the European Alternative Fuels Observatory.

Tesla was the leading brand in the BEV market, followed by BYD and BMW. The most popular models were Tesla Model Y, Kia EV3 and Tesla Model 3.

The PHEV market showed slower growth of 25.3%, taking a 5.5% market share. These powertrains were heavily driven by corporate buyers, accounting for 74% of PHEV and 80% of BEV registrations.

Last year, the Hungarian new-car market experienced a significant influx of Chinese car brands, led by BYD. The carmaker is about to produce the Dolphin Surf and Atto 2 at its new Szeged plant in Hungary. Other key players expanding their presence include Chery’s Omoda and Jaecoo, Nio, Leapmotor and SAIC-owned MG.

Growth expected in 2026

This year, Hungary’s new-car market is forecast to grow slightly following post-COVID-19 volatility. While new-car sales may see a modest increase, the market faces pressures from high consumer prices and strict emission standards. This is despite Hungary’s currency, the forint, strengthening to its highest level in recent months.

HEVs can be expected to continue dominating the new-car market in 2026. The government’s BEV incentive scheme for business fleets has been extended again. It will now run until 15 April, and with a budget of over 5 billion forints (€13,175,000).

The European Alternative Fuels Observatory expects a new subsidy scheme to be introduced for private buyers this year. However, no date has yet been confirmed. With or without them, it is doubtful that these vehicles could gain a significant market share in Hungary.

Imports increase in Hungary

The number of used cars imported into Hungary nearly matched last year’s new car registration total at 128,155 units. This level was 15.5% higher than in 2024 and 21.3% above 2023.

On average, an imported car is now 12 years old. Meanwhile, the total market saw average age hit 16.3 years in 2025, which has been growing slowly. Nominal prices are continuously crawling upwards because of the increasing demand and limited supply. Even the improving exchange rate cannot offset this phenomenon.

Most buyers are looking for more affordable vehicles, opting primarily for Euro 4 and Euro 5 cars. Among these models, naturally aspirated petrol engines are the most popular propulsion systems. Diesel is also popular for larger vehicles and covering long distances. Tesla has a high ranking as a BEV brand, with the Model 3 considered a reliable choice.

Germany continues to be a primary import market for Hungary, thanks to reliability and a wide selection of cars. Belgium is another major source, which sees well-maintained, regularly serviced cars in good condition.

Elsewhere, Italy brings rust-free bodies, and the Netherlands imports well-maintained cars with detailed, manipulation-free online registration.