Hungary has become a key production base for automotive majors such as Audi, Daimler (Mercedes-Benz), Suzuki and General Motors.
Hungary
- The Hungarian machinery sector is mainly focused on the production of agricultural machines and machines used by the automotive industry.
- Hungarian agriculture output has increased, leading to rising demand for machinery.
- In the automotive segment machinery businesses cooperate closely with international car producers. Hungary has become a key production base for automotive majors such as Audi, Daimler (Mercedes-Benz), Suzuki and General Motors.
- Machinery sales only rose slightly in January-April 2015. However, sales prices have increased by more than 10% since June 2014, and order amounts are also higher. Therefore we expect profit margins to improve further in the coming months.
- In general the gearing of businesses in this sector is low, and banks are generally willing to provide loans.
- The average payment duration in the machinery industry ranges from 30-60 days. Payment delays are low, and expected to decrease further in the coming months. Insolvencies are low and not expected to increase in 2015.
- Due to the good growth prospects and low credit risk our underwriting stance is relaxed for all subsectors.