Could the Hungarian car industry be ruined by the Russian-Ukrainian war?

The Russian-Ukrainian war is already causing serious problems for the Hungarian car industry. The main reason for this is that the suppliers there cannot deliver. It is also a problem to transport smaller components from China by rail to Hungary.

The car industry has collapsed

The car industry has not returned to its old self, neither in Hungary nor in other countries, yet another crisis is already upon us. Not too long ago, the difficulties were caused by the coronavirus pandemic. This time, there is a setback due to the effects of the Russian-Ukrainian war. Csaba Kilián, the Executive Secretary of the Hungarian Automobile Industry Association, spoke about his concerns.

First, in the field of logistics and the supply of raw materials, the effects of the war can already be felt.

However, according to the expert, it largely depends on from where each company procures their raw materials. Companies that work with Ukrainian suppliers are already perceiving the problem, as those companies have not been available for days, writes napi.hu. 

It is also a serious problem that the war could damage logistics routes.

The question is how they may be triggered in the future or how long the war will last. Many parts and components arrive in Hungary via Ukraine and Russia.