Debrecen4U March 26, 2026

Portfolio Automotive Conference in Debrecen

The automotive industry is simultaneously grappling with regulatory and market uncertainty, energy and supply risks, and increasingly intense technological competition, while electrification, ESG and AI are no longer future considerations but part of day-to-day operations. At the Automotive Industry 2026 conference organised by Portfolio, Zdeněk Petzl, Chief Representative of CEE AutoHUB and Executive Director of the Czech Automotive Industry Association, highlighted that unless EU regulations are relaxed, European manufacturers could face total annual fines of around €18 billion, which amounts to roughly one-third of the sector’s total annual research and development budget, as reported by Portfolio.hu.

“The Hungarian automotive industry is in the midst of a technological transition, where digitalisation and carbon neutrality are no longer optional but a prerequisite for remaining competitive,” said Csaba Kilián, Managing Director of the Hungarian Automotive Association, at Portfolio’s Automotive Industry 2026 conference in Debrecen. He emphasised that the technological transition is no longer a future prospect but part of everyday operations. In his view, digitalisation, autonomous driving technologies and achieving carbon neutrality are no longer choices, but conditions for staying competitive.

The head of the Hungarian Automotive Association also noted that over the past decade the Hungarian automotive industry has undergone significant development. After Győr, Kecskemét, Budapest and Esztergom, Debrecen has also become one of the most important centres of the Hungarian automotive industry. “Hungary is now one of the key players in the European automotive industry,” Csaba Kilián stated at the conference.

It was also noted at the event that the European automotive industry is going through a period of crisis: its global market share is shrinking, profitability is declining sharply, and EU regulatory burdens are becoming increasingly difficult to manage.

In his presentation, Zdeněk Petzl pointed out that since 2017 the European automotive industry has lost around 20% of its global market share. European sales volumes remain 18% below pre-pandemic levels, and major automotive manufacturers (OEMs) recorded an average 50% drop in profits in the first half of 2025 compared to previous years. According to Petzl, one of the main causes of the current situation is the enormous regulatory burden.

According to the article, while in the 1970s emissions regulations consisted of only a few dozen pages, today a single piece of legislation can approach 2,000 pages. Moreover, additional provisions are still being developed for the Euro 6 standard, while significant parts of the detailed rules for Euro 7 remain unknown.

The sector’s competitiveness is further undermined by energy prices, as EU average prices are roughly three times higher than those in the United States and China.

As reported, the EU automotive package presented at the end of last year consists of several elements, including:

• the review of CO₂ emissions regulations for passenger cars,
• the adjustment of emissions targets for heavy-duty vehicles,
• the automotive omnibus regulation,
• the framework for clean corporate fleets,
• and the Industrial Accelerator Act.

For passenger cars, the European Commission has reduced the mandatory share of zero-emission vehicle sales from 100% to 90% by 2035.

The remaining 10% – approximately one million vehicles – cannot be economically distributed among European manufacturers. As a result, the production of these models is expected to move outside Europe. Moreover, the omnibus regulation aimed at simplifying administration affects only six pieces of legislation, which is negligible compared to the nearly 200 regulatory measures facing the sector.

Market realities also call for caution. The share of electric vehicles in Europe is currently around 18%, which falls short of the level expected by regulators. A significant proportion of consumers are not ready to switch: only one in four buyers plans to purchase an electric car, many prefer hybrids, while others would not switch at all. Charging costs in many cases exceed those of conventional fuels, while the range and charging time of smaller models remain uncompetitive.

If regulations are not eased, European manufacturers could face total annual fines of around €18 billion. This amount represents roughly one-third of the sector’s total annual research and development budget, the article states.

According to Petzl, the solution lies in a technology-neutral approach. This includes recognising carbon-neutral fuels, ensuring the future of plug-in hybrid (PHEV) vehicles, and supporting range-extender models. It is also essential to significantly reduce energy costs and the burden of permitting procedures. The AutoHUB platform was established to bring together automotive industry stakeholders in Central and Eastern Europe. The initiative aims to enable Czech, Hungarian, Polish, Slovak and Romanian industry organisations to act in a coordinated manner in Brussels. The Hungarian Automotive Association (MAGA) has also recently joined the platform. For the region, the key question is whether it can sit at the European table as an active negotiating partner, or whether it will be forced merely to accept decisions made by others, the article concludes.

Source and photo credit: dehir.hu