The Germany-based automotive company, BMW, has announced it is investing €1bn ($1.17bn) in a new car factory in Hungary, Reuters reports.
It is hoped that the project will aid the country’s growth and help to increase its standing in the premium car manufacturing market in the area.
BMW confirmed that its new facility is set to be built near Debrecen and is expected to hold a production capacity of 150,000 cars annually.
It is anticipated the move will enable BMW to expand its manufacturing production in Europe where almost half of its cars are sold.
Oliver Zipse, BMW AG Board Member for Production, said: “Our new plant in Hungary will also be able to manufacture both combustion and electrified BMW models – all on a single production line.”
Peter Virovacz, an analyst at ING in Budapest, believes that following BMW’s investment “car manufacturing could rise to 40% of Hungary’s total exports.”
The new factory will see BMW join its automotive rivals Daimler and Audi with facilities in the country following Audi’s announcement last week it has unveiled serial production of electric engines at its base in Hungary.