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You are here: Home1 / News2 / Member News

Electrification slowing down, sales above the EU average: this was CEE automotive market in 2025

Member News

Despite the turbulent economic conditions, the automotive market in Central and Eastern Europe showed growth in 2025 that exceeded expectations and outpaced Western Europe. In the coming years, hybrid powertrains and Chinese brands are expected to gain further ground, as their goal is to establish a dominant global presence and demonstrate leadership in electrification technology, with Europe serving as a springboard – according to a report compiled by AutoWallis for the third time. As a leading integrated mobility service provider in the Central and Eastern European (CEE) region, AutoWallis is present in 17 countries with 30 brands, giving it a comprehensive view of the processes and trends in Hungary and neighboring countries, which they summarize in their regular CEE Automotive Report.

AutoWallis operates in Central and Eastern Europe, which is why their industry analysis focuses primarily on this region. The company is present in 17 countries (Austria, Albania, Bosnia and Herzegovina, Bulgaria, the Czech Republic, North Macedonia, Greece, Croatia, Kosovo, Poland, Hungary, Moldova, Montenegro, Romania, Serbia, Slovenia, and Slovakia) with wholesale and retail operations for vehicles and parts, as well as mobility services, representing 30 brands and boasting over three decades of automotive industry experience. AutoWallis’ growth strategy therefore focuses on this region, as it is in this environment with high growth potential that the group’s experts possess knowledge and value-creating capabilities that surpass those of its competitors.

The CEE Automotive Report 2025 provides a comprehensive overview of the state of the region’s automotive markets in 2025 and their growth potential for the coming period. In addition to a country-by-country breakdown, the report examines the market share of various powertrains (ICE, BEV, PHEV, HEV, etc.), analyzes the regional passenger car and light commercial vehicle fleets, and forecasts the expected trends in the automotive market for 2026. In compiling the report, in addition to the ACEA database, data from Datahouse, the European Commission, and the Hungarian Central Statistical Office (KSH) were used to conduct a detailed analysis of neighboring markets to create the most comprehensive regional overview possible.

The share of electric powertrains among new cars continued to grow

In terms of new passenger car registrations, countries in the CEE region saw a 7.7% increase, compared to the EU average of 1.8%. Within the region, Austria had the highest growth rate (12.3%), but the performance of the Slovenian (8.6%) and Polish (8.3%) markets was also notable. Slovakia was the only country in the region to record a decline (-0.3%). Of the 27 EU member states, 19 markets showed a positive trend compared to 2024, although the volume varies significantly by country.

At the same time, registrations of battery electric passenger cars (BEVs) increased by an average of 29.7% in Europe in 2025, with the European Union showing a 29.9% increase. Looking at the CEE region average, registrations of pure electric cars significantly exceed even the EU’s average growth rate (53.3%). Poland achieved the highest growth in electric vehicles in 2025, registering more than two and a half times as many such passenger cars (161.5%).

Battery electric vehicles (BEVs) remained the third most popular choice among buyers in the EU in 2025, behind hybrids and gasoline-powered cars. In the CEE region, hybrid-electric vehicles are also the most popular (37.8%), closely followed by gasoline-powered cars (33.7%). Unlike in the EU, fully electric cars are the fourth most popular (9.1%), trailing diesel vehicles (11%), according to an analysis by AutoWallis.

The Hungarian market offers a wealth of opportunities

The 4.2 million passenger cars on Hungarian roads represent the second-oldest fleet in the EU (16.5 years), and the number of cars per 1,000 inhabitants is the second lowest in the EU (445). Similar to passenger cars, the average age of light commercial vehicles (521,000 units) is also high (13.2 years), which highlights the lag in the business sector.

In 2025, the Hungarian passenger car market performed between the EU and regional averages: a 6.4% increase compared to the previous year translates to 129,000 newly registered cars. Lagging behind the EU’s 17.4% figure, the share of electric cars was 8.5%, nearly matching the CEE region’s average. Although electric car sales increased compared to the previous year (28.5%), the rate of growth remained below the EU average. Registrations of light commercial vehicles decreased by 4.5% (23,700 units), while registrations of purely electric vehicles within this segment increased by 60.1%.

2026 will be no less turbulent: ongoing (tariff) wars, unstable supply chains, government subsidies

The direct and indirect effects of escalating international conflicts, various protective tariffs and sanctions affecting major raw material-supplying countries, as well as the impact of major international routes (commercial shipping, air corridors) pose significant challenges on their own, but their combined presence makes economic planning more difficult globally, including in Europe.

The automotive industry remains heavily dependent on Chinese battery materials, Asian chip manufacturers, and global logistics routes. Geopolitical tensions (US-China, EU-China, Middle East) could disrupt production at any time. Soaring oil prices due to the war in Iran, as well as uncertain and increasingly expensive transportation (in terms of both cost and time), are expected to drive up costs for automakers (OEMs), which will manifest in even higher new car prices and general inflationary pressure. AutoWallis expects manufacturers to respond to these bottlenecks by focusing on higher-margin models, while in the longer term, they may accelerate the development of regionalized production and warehousing.

Growing market pressure and China’s continued expansion

While European manufacturers, who have fallen behind in both capacity and development and are under market pressure, China has been the world’s largest auto exporter since 2023. At the same time, Europe is one of the world’s most profitable car markets, with high purchasing power and strong demand for EVs. It is no wonder that Europe has become an extremely attractive and important target for Chinese OEMs, and a central element of China’s export strategy. Despite the EU launching an anti-subsidy investigation and imposing punitive tariffs on Chinese EVs, manufacturers have remained competitive, and exporting to Europe remains profitable even with the tariffs. Chinese manufacturers are particularly strong in the electric vehicle sector; according to the consensus among analysts, they have a competitive advantage of approximately 3–5 years in the field of electrification. At the same time, the segment of plug-in hybrids with extra-long range is gaining ground, as there are currently no additional tariffs on plug-in hybrid (PHEV) models, unlike on battery electric vehicles (BEVs) and extended-range electric vehicles (EREVs).

However, Europe is important to Chinese manufacturers not only because of its sales potential, but also as a valuable benchmark: if a model meets the EU’s notoriously strict safety and environmental standards, it lends strong credibility to the brand globally, including in their other export markets. Success in Europe is key to their global ambitions. Among the major Chinese brands, only a few are currently strong in Europe, but numerous other manufacturers are planning a vigorous market offensive over the next 12 months. We can therefore expect Chinese models to continue gaining ground in the European market, with the emergence of dedicated “budget EV” models – similar to the Japanese kei-car concept.

 

12.05.2026
https://bcsdh.hu/wp-content/uploads/2025/05/AutoWallis_DrivngTogether_LOGO_CMYK_inverse-darkblue.png 517 1237 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-05-12 08:50:122026-05-12 08:50:12Electrification slowing down, sales above the EU average: this was CEE automotive market in 2025

AutoWallis expands their portfolio with electric brands

Member News

Geely in Austria

AutoWallis is further strengthening its portfolio with another leading brand after signing a distribution agreement for Austria with China’s Geely Auto. The agreement covers the Austrian distribution rights of the Geely brand this time. With this step, AutoWallis further expands the number of brands it represents and strengthens its cooperation with the world’s eighth largest vehicle manufacturer, while further diversifying its position in Central and Eastern Europe.

The Geely brand will enter the Austrian market in 2026 with two models and two types of powertrains: the E5, and the Starray EM-I models are a mid-range, elegant yet distinctive SUV. E5’s design has earned several prestigious international awards, including the Red Dot Award, the MUSE Design Award, the IDA Design Award, and the A’ Design Award. E5 has an outstanding drag coefficient of 0.269 and will be available with a 60.22 kWh battery pack, promising a WLTP range of 430 km, while the plug-in hybrid model with a 1.5-liter gasoline engine and 18.4 kWh battery has a total output of 217 hp and a range of approximately 940 km.

 

 

XPENG in Romania

AutoWallis, the leading integrated car dealer and mobility service provider in the CEE region, has reached a tripartite agreement with its Portuguese partner, the Salvador Caetano Group and the innovative, AI-focused Chinese car manufacturer XPENG to become the importer of XPENG in Romania. This agreement is built on the foundations of the already ongoing cooperation in three other CEE countries (Hungary, Slovenia and Croatia) in 2025 with the innovative, AI-focused Chinese car manufacturer. Sales in the fourth market is expected to start early this summer.

The brand is at the forefront of the new energy car revolution: the quality of their cars is competing with the world’s leading premium manufacturers, and its technological superiority is outstanding in areas such as artificial intelligence, ultra-fast charging or advanced autonomous driving.

Commenting on this recent milestone, Gábor Ormosy, CEO of AutoWallis highlighted, that “We are delighted that XPENG has entrusted AutoWallis and our partner Salvador Caetano with a fourth market, especially given that Romania is the second most populous country in Central Eastern Europe. Compared to the three markets where we already started operations in 2025, Romania represents an additional sales volume opportunity of around 60%.”

11.05.2026
https://bcsdh.hu/wp-content/uploads/2025/05/AutoWallis_DrivngTogether_LOGO_CMYK_inverse-darkblue.png 517 1237 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-05-11 13:49:252026-05-11 13:50:24AutoWallis expands their portfolio with electric brands

Flexible energy solutions for sustainable and predictable operations

Member News

The functioning of energy markets is increasingly shaped not only by economic factors but also by geopolitical developments. Global events are rapidly and directly reflected in European energy prices, resulting in sustained volatility and market movements that are difficult to predict. In this environment, the role of energy is also evolving: for companies, it is no longer merely a cost factor, but a strategic resource that directly influences operations and competitiveness.

E.ON Hungária Group aims to support its customers in adopting a more conscious and forward-looking approach to energy procurement, even in a constantly changing market environment. The Group offers solutions that enable customers to tailor their energy strategies to their specific operations and needs, while remaining flexible in response to market developments.

Sustainability has become an integral part of energy procurement. Companies are placing increasing emphasis on ensuring that their energy consumption meets not only economic but also environmental expectations. In line with this, E.ON provides solutions that support a higher share of renewable energy in supply portfolios and contribute to the achievement of corporate sustainability goals.

Flexible contractual structures – including fixed-price and market-based solutions, as well as their combinations – allow companies to balance cost considerations with operational flexibility. The development of a conscious energy strategy increasingly depends on timing, contractual design, and the appropriate combination of available solutions.

Digitalisation is also becoming a key enabler: time-based tariffs built on smart metering data allow for more precise consumption planning and more effective utilisation of market opportunities. This type of flexibility is particularly valuable in an environment characterised by rapidly changing prices.

When designing contractual structures, adapting to market conditions becomes a priority. E.ON offers agreements across different time horizons, enabling customers to choose solutions that best fit their operations—whether prioritising short-term flexibility or longer-term predictability.

As the energy market continues to evolve, the role of the energy trader is also transforming. Beyond ensuring supply, increasing emphasis is placed on informed planning and decision support. In this context, flexible energy supply is not merely a tool, but a key enabler of predictable, responsible and sustainable long-term operations.

21.04.2026
https://bcsdh.hu/wp-content/uploads/2022/07/E.ON_RGB_Red.png 595 842 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 12:35:402026-04-21 12:35:53Flexible energy solutions for sustainable and predictable operations

Greater transparency, fewer misconceptions in the energy storage market

Member News

ALTEO is launching a free, online report that provides operators, owners, and prospective investors in energy storage with real, first-hand data on potential returns.

The objective is clear: to help dispel misconceptions and uncertainties surrounding energy storage, and to support well-informed decision-making in a rapidly evolving market environment.

The market is constantly changing—making it especially important that decisions are based on up-to-date, real-world data.

The full report is available on ALTEO’s website.

21.04.2026
https://bcsdh.hu/wp-content/uploads/2025/09/ALTEO_450.jpg 450 450 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 11:54:062026-04-21 11:54:06Greater transparency, fewer misconceptions in the energy storage market

ALTEO’s energy storage capacity has expanded significantly

Member News

The unit inaugurated in Győr, with a capacity of nearly 100 MWh and a power output of 49.9 MW, is currently Hungary’s largest industrial energy storage facility, accounting on its own for approximately 20% of the country’s total storage capacity. With the commissioning of the fifth lithium-ion storage unit in Bana—featuring 10 MW power and 20 MWh capacity—ALTEO’s total energy storage capacity has increased to 80 MW.

In the field of energy storage, the primary challenge today is no longer the technology itself, but how to operate available capacities efficiently within a market environment. In recent years, ALTEO has built its own digital production management and optimization solutions around this challenge, enabling it to efficiently manage not only its own assets but also the portfolios of its partners.

The new units are connected to ALTEO’s VPP, allowing them to actively participate in the flexibility and balancing processes of the domestic electricity market.

21.04.2026
https://bcsdh.hu/wp-content/uploads/2025/09/ALTEO_450.jpg 450 450 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 11:49:382026-04-21 11:51:27ALTEO’s energy storage capacity has expanded significantly

Successful PICASSO accreditation at ALTEO

Member News

ALTEO has successfully completed MAVIR’s aFRR accreditation tests, thereby meeting the prerequisite for joining the PICASSO platform. As of October 1, 2026, the company will be able to provide balancing services not only domestically but across nearly the entire continent.

During the accreditation process, one of Hungary’s largest regulation capacities—comprising several hundred MWs and integrating both conventional and renewable generation—was successfully tested. In addition to ALTEO’s own power plants, solar facilities operating under KÁT, METÁR, and merchant market schemes from long-standing partners also contributed significant capacity to the accreditation.

21.04.2026
https://bcsdh.hu/wp-content/uploads/2025/09/ALTEO_450.jpg 450 450 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 11:46:152026-04-21 11:46:15Successful PICASSO accreditation at ALTEO

Green transition is not a sprint, but a marathon.

Member News

Attila Chikán Jr., CEO of ALTEO, is a contributing author to the publication GREEN ECONOMY 2026 – the third edition of the Hungarian Association of Environmental Enterprises’ landmark study.

His article examines the industry and system-level issues shaping the sustainable transformation of Hungary’s electricity system, with particular focus on balancing sustainability, security of supply, and affordability. Global demand for electricity is growing at an unprecedented pace, while the expansion of renewable-based generation is bringing increasingly complex technical, grid-related, and regulatory challenges to the forefront.

The article also highlights that the stable long-term operation of the electricity system can only be ensured through a diversified asset portfolio, flexible reserves, and data-driven, intelligent control.

The GREEN ECONOMY 2026 publication can be downloaded via the link after providing personal details.

21.04.2026
https://bcsdh.hu/wp-content/uploads/2025/09/ALTEO_450.jpg 450 450 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 11:42:382026-04-21 11:42:38Green transition is not a sprint, but a marathon.

Environmental, social and governance factors must also be considered in banks’ corporate governance and risk management systems

Member News

The Magyar Nemzeti Bank (MNB) has renewed its green banking recommendation, incorporating the European Banking Authority’s guidelines on the management of ESG risks, while retaining several domestic expectations that go beyond EU requirements. The new recommendation applies to domestic credit institutions, including third-country credit institution branches and licensed investment service providers. As for its entry into force, it will be implemented in two phases: from 1 July 2026, large and complex institutions will fall under its scope, while from 1 January 2027, the supervisory expectations set out in the green banking recommendation will also enter into force for the other market participants covered by recommendation.

The document in Hungarian can be found here.

21.04.2026
https://bcsdh.hu/wp-content/uploads/2022/01/MNB.png 170 450 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 11:28:182026-04-21 11:28:18Environmental, social and governance factors must also be considered in banks’ corporate governance and risk management systems

EU Pay Transparency Directive: obligations and actions for companies

Member News

The EU Pay Transparency Directive (2023/970) introduces new obligations for employers, particularly regarding the disclosure of pay gaps, salary information in job postings and employee information rights. Member States must transpose the directive by 7 June 2026. As a result, companies need to review their compensation systems, HR processes and internal policies.

This guide explains who is affected by pay transparency, what obligations companies face, and what concrete steps are required to ensure compliance.

What does pay transparency mean in practice?

  • mandatory disclosure of salary ranges in job advertisements
  • regular reporting on the gender pay gap
  • employees’ right to request pay information
  • implementation of objective and gender-neutral pay systems

What should employers know about pay transparency?

The objective of the Pay Transparency Directive is to strengthen the principle of “equal pay for equal work” and reduce gender pay gaps. Member States must transpose the Directive into national law by 7 June 2026.

For companies, pay transparency primarily introduces changes in the following areas:

  • regular reporting obligations on the gender pay gap
  • joint pay assessments with employee representatives in certain cases
  • the development and communication of transparent salary bands
  • the application of data-driven HR analytics
  • more structured leadership communication around remuneration

Pay transparency therefore represents not a single HR process, but the coordinated functioning of several organisational areas.

The following summary presents the key insights from our six-part article series.

How will pay transparency be implemented in Hungary?

The Pay Transparency Directive introduces new tools to increase transparency in remuneration systems. Among other elements, the regulation requires:

  • the communication of salary ranges in job advertisements or during the recruitment process
  • the prohibition of questions about previous salary
  • regular measurement and reporting of the gender pay gap
  • joint pay assessments in certain situations

The Hungarian implementation is expected to affect several areas simultaneously, including:

  • the Labour Code
  • equal treatment regulations
  • data protection practices

For employers, pay transparency therefore represents primarily an integrated HR and legal challenge.

Read more about the expected Hungarian implementation: 

Pay transparency part 1: Where does Hungarian implementation stand?

What reporting obligations apply to companies?

One of the key elements of the Directive is the regular analysis and reporting of the gender pay gap.

Companies will be required to report, among other indicators:

  • the average and median gender pay gap
  • differences in variable remuneration
  • the proportion of women and men across job categories

If the pay gap within a given employee category exceeds a defined threshold and cannot be explained by objective factors, the employer must conduct a joint pay assessment with employee representatives.

In practice, this means a comprehensive review of the compensation system, including:

  • job requirements
  • salary bands
  • performance evaluation systems
  • promotion practices

Read more about reporting obligations and joint pay assessment: 

Pay transparency part 2: Joint pay assessment and reporting obligations in practice

How can companies prepare for pay transparency?

A key condition for implementing pay transparency is the establishment of a clear and consistent job architecture.

Its main components include:

  • defined job families and career levels
  • standardised job descriptions
  • objective classification principles

These provide the basis for job evaluation systems and salary band structures that determine the appropriate remuneration range for each position.

In international practice, a readiness audit is increasingly used to assess how prepared an organisation is for the requirements of pay transparency.

Read more about readiness audits:

Pay transparency part 3: Readiness audit for Hungarian employers

How can gender pay gaps be measured?

One of the most important elements of pay transparency is the proper analysis of pay data.

Gender pay gaps are typically analysed on two levels:

Unadjusted pay gap
The simple difference between the average pay of men and women.

Adjusted pay gap
A statistical analysis that controls for factors such as job role, experience or location.

These analyses are not only required for compliance purposes but also support leadership decision-making.

Many organisations increasingly rely on dashboards and HR analytics tools to monitor compensation structures and identify potential risk areas.

Read more about pay equity analysis:

Pay transparency part 4: What do the data show?

What should be communicated to employees?

Communication is one of the most sensitive aspects of pay transparency.

The Directive introduces information obligations on three levels:

  • towards authorities, through gender pay gap reporting
  • towards employees, through regular information on pay equity
  • on an individual level, when employees request information about their own pay and comparable roles

Effective communication helps prevent misunderstandings and maintain organisational trust.

Read more about communication requirements:

Pay transparency part 5: What, when and how must be communicated?

What is the role of leadership in pay transparency?

Ultimately, pay transparency becomes visible in everyday leadership conversations.

Typical employee questions often focus on:

  • how salary bands work
  • what determines placement within a band
  • why differences exist between teams or roles

Leaders must be prepared to answer these questions consistently and based on objective criteria.

Typical leadership questions and response frameworks:

Pay transparency part 6: Consistent leadership responses

Pay transparency as an opportunity for organisational development

Although pay transparency is primarily introduced as a regulatory obligation, it can also represent a broader organisational development opportunity.

Transparent salary structures, data-driven HR decisions and consistent communication can help organisations:

  • strengthen employee trust
  • improve retention
  • create more predictable and transparent operations

If you would like to assess how prepared your organisation is for the requirements of pay transparency, our experts can support you with readiness audits, job architecture design and compensation structure reviews.

21.04.2026
https://bcsdh.hu/wp-content/uploads/2026/04/gt_logo.webp 475 1730 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 11:19:062026-04-21 11:19:42EU Pay Transparency Directive: obligations and actions for companies

Greenbors = BREEAM Market Leader in Hungary

Member News

Greenbors further strengthened its market-leading position in Hungary’s rapidly growing BREEAM certification market in 2025. The year 2025 proved to be a milestone in the history of sustainable architecture and certification systems in Hungary. An analysis of the latest Market Snapshot reveals a trend that is particularly important to us at Greenbors Consulting: the meeting of demand for expertise and quality.

Read more

21.04.2026
https://bcsdh.hu/wp-content/uploads/2022/01/greenbors-consulting.png 170 450 Gyurgyik Anna https://bcsdh.hu/wp-content/uploads/2021/12/bcsdh-logo.png Gyurgyik Anna2026-04-21 10:59:572026-04-21 10:59:57Greenbors = BREEAM Market Leader in Hungary
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