Concentration of the hungarian automotive industry in 2022

Abstract

The automotive manufacturing industry is facing extraordinary challenges today. However, in recent years, Hungary has experienced a surge in investment activity, as evidenced by the establishment of BMW and BYD plants, and the expansion of the Mercedes factory. These developments further strengthen the country's industrial position, particularly in the automotive sector. The aim of this study is to determine the territorial and market concentration of the Hungarian automotive manufacturing sector (classified under NACE Rev. 2 code 29). The research is based on secondary data sourced from the EMIS database. Key financial indicators of Hungarian enterprises whose main activity falls under NACE 29 were analysed for the year 2022. After data cleaning, the final sample included 144 companies. To examine spatial concentration, we utilised visualised corporate data in Tableau. For market concentration analysis, we applied the Lorenz curve, the Gini index, and the Herfindahl-Hirschman index (HHI). The results indicate that territorial concentration is highest in Western and Central Hungary, with Győr-Moson-Sopron, Komárom-Esztergom, and Bács-Kiskun counties playing particularly significant roles. In terms of market concentration, the Lorenz curve and the Gini-index reveal a high level of concentration, while the HHI suggests moderate market concentration. Remarkably, 80% of the total assets and 79% of the total revenue in the Hungarian automotive sector are concentrated within just 10 companies – representing only about 7% of the sample.