Yasunari Miyauchi, General Director of JETRO Budapest, offers a clear view of Japan–Hungary ties at a moment of shifting trade and investment patterns. With more than 180 Japanese companies anchored in Hungary’s automotive ecosystem and new projects in electronics and battery materials coming online, opportunities span electrification, connectivity and advanced manufacturing. At the same time, firms face cost pressures and evolving EV demand. Miyauchi explains the current landscape and how JETRO is connecting Japanese investors, Hungarian startups and new consumer markets.
Bridges: How would you describe the current economic relationship between Japan and Hungary?
Miyauchi: In 2024, Hungary exported goods worth €865 million to Japan, primarily automobiles, office equipment, and computers. Meanwhile, imports from Japan totaled €1.322 billion, with key items including electrical and electronic equipment and vehicles. Both figures declined compared to the previous year, largely due to weakened demand amid Europe’s economic slowdown and sluggish EV sales.
In terms of investment, Japanese direct investment into Hungary continues to be the dominant trend. In November last year, SIIX Hungary, an electronic components manufacturer, announced that it would cease production activities by the end of March 2025 and consolidate all manufacturing operations at its facility in Slovakia. On the other hand, in October, Foster Electric opened its first manufacturing site in Europe, and in May this year, Nippon Paper Industries launched its first European production base for its chemical division, initiating trial production of thickening agents used in lithium-ion batteries for EVs.
Recent announcements of expansion investments include Alpine Electronics Manufacturing of Europe’s decision to increase its production capacity for in-vehicle modules, and Nissin Foods Hungary’s construction of a second factory, which will double its annual production capacity to 500 million servings.
Over 180 Japanese companies, including Magyar Suzuki, Denso, and Ibiden, are active in Hungary—primarily in automotive manufacturing. As a strategic production base and export hub to the EU, Japanese firms play a vital role in Hungary’s industrial ecosystem.
JETRO is actively promoting Japanese investment in Hungary by researching key sectors such as automotive, energy, and environment, and sharing timely market insights with Japanese companies.
Yasunari Miyauchi, General Director of JETRO Budapest
What opportunities and challenges do Japanese companies face in Hungary?
Japanese firms in Hungary are mainly engaged in manufacturing, especially in the automotive sector. While the shift to electric vehicles (EVs) has faced temporary setbacks due to European market and policy fluctuations, signs of recovery are emerging. Hungary, as a major automotive cluster, offers promising opportunities for Japanese companies to adapt to trends not only in electrification but also in connectivity and autonomous driving technologies.
However, rising inflation and wage growth pose significant challenges. With wage levels expected to increase further, cost control remains a critical issue for manufacturers. In the EV battery sector, intensive investment from Chinese and Korean firms has begun to stabilize. Japanese investment has slowed, but there is potential for expansion by existing firms.
What is JETRO doing to further strengthen the close ties between Japan and Hungary?
JETRO is actively promoting Japanese investment in Hungary by researching key sectors such as automotive, energy, and environment, and sharing timely market insights with Japanese companies. In collaboration with the Japanese Chamber of Commerce in Hungary, JETRO identifies challenges faced by Japanese firms and communicates them to the Hungarian government to improve the business environment.
As open innovation gains momentum in Japan, JETRO is scouting Hungarian startups with advanced technologies in digital and green transformation (DX/GX), facilitating international collaboration through its J-Bridge matching platform.
Additionally, with growing demand in Hungary for Japanese food, content, and design products, JETRO organizes business events and promotional campaigns to connect local buyers with Japanese offerings. Taking food as an example, JETRO has invited Hungarian buyers to Japan, promoted Japanese scallops at 30 high-end restaurants in Budapest, and, through The Japan Food Product Overseas Promotion Center (JFOODO)’s dedicated program, hosted culinary sessions led by Japanese chefs for local professionals—fostering cross-cultural collaboration and opening new frontiers in food culture.
