The German automaker Daimler is expected to start production of a fully electric compact SUV in Hungary in the fourth quarter of 2021 after an investment of 100 million euros.
Automobile manufacturing plays a central role in the Hungarian economy, and the vehicle will be the first fully electric car to be manufactured in the nation.
Together with other important German car manufacturers, Audi and BMW, Daimler is expanding its activities in the country by increasing production throughput.
Daimler is expanding in the small, central Hungarian town of Kecskemet, which aims to create at least 4,400 new jobs in the region.
Hungary's economy contracted 13.9% in the second quarter of 2020 and was generally hard hit by the coronavirus pandemic. A further decrease of 5-6% is forecast for the fourth quarter.
The automotive sector is expected to play a key role in helping Central European countries recover from the pandemic.
Daimler recently announced that the Mercedez-Benz brand will be fully decarbonised by 2039 in accordance with general EU regulations on recovery from Covid.
The German car manufacturer will present eight new electric models for production as part of its 2022 portfolio.