AUTOMOTIVE INDUSTRY
The sector that keeps the world moving. At the same time, it reflects some of our challenges: just as electric and hybrid drives are becoming more widespread, we are also gradually shifting toward legaltech tools.
At Jalsovszky, we provide comprehensive legal services to international automotive companies seeking to establish, expand, or optimize their operations in Hungary. Our deep understanding of Hungary's automotive regulatory framework, combined with our extensive experience in cross-border transactions, positions us as the preferred legal partner for foreign enterprises across the entire automotive value chain.
Hungary's position as a leading automotive manufacturing hub in Central Europe, hosting major production facilities for global automotive brands, makes it an attractive destination for automotive investments. We guide foreign investors through the complexities of establishing automotive operations, from initial feasibility assessments to full operational deployment.
Our services encompass structuring optimal investment vehicles, whether through greenfield manufacturing facilities, acquisition of existing automotive companies, or establishment of Hungarian subsidiaries for automotive component suppliers. We provide detailed analysis of investment incentives available for automotive projects, including government grants, tax benefits, and EU funding opportunities that are frequently accessible for industrial and manufacturing developments.
For clients considering large-scale automotive investments, we coordinate with external advisors, as needed, as well as environmental specialists, and financial advisors to ensure comprehensive due diligence processes that address regulatory compliance, supply chain integration, and long-term operational sustainability within Hungary's automotive ecosystem.
The establishment of automotive manufacturing facilities requires navigation of complex zoning regulations, industrial permitting processes, and compliance with automotive industry-specific safety and environmental standards. We provide end-to-end support for industrial real estate transactions, including site selection, negotiation of purchase or lease agreements, and management of permit applications.
Our services extend to structuring manufacturing joint ventures with local partners, technology transfer agreements, and supply chain arrangements that integrate new operations into Hungary's established automotive manufacturing network. We assist contractually with supplier quality documentation obligations.
We also provide guidance on establishing automotive research and development facilities, including compliance with regulations governing automotive testing and IP issues relating to research and development.
Hungary's automotive sector operates within the comprehensive EU regulatory framework governing vehicle safety, emissions, and type approval processes. Foreign automotive businesses must maintain ongoing compliance with evolving standards covering vehicle homologation, component certification, and end-of-life vehicle regulations.
We provide ongoing regulatory compliance support, including establishment of compliance management systems for automotive manufacturers and suppliers, preparation for regulatory inspections, and response to market surveillance actions. Our services include navigating the complex landscape of the most significative automotive regulations.
For clients engaged in electric vehicle manufacturing or alternative fuel technologies, we provide guidance on specific regulatory requirements, charging infrastructure regulations, and compliance with battery regulations that govern the emerging electric mobility sector throughout the EU.
Modern automotive operations involve intricate global supply chains with stringent quality, delivery, and cost requirements. We structure and negotiate commercial agreements that support our clients' automotive operations, including supplier agreements, distribution arrangements, and original equipment manufacturer contracts.
Our expertise extends to automotive aftermarket operations, including establishment of parts distribution networks, compliance with competition law requirements in automotive distribution, and development of service arrangements that connect Hungarian automotive operations with international markets. We advise on compliance with block exemption regulations governing automotive distribution and repair services.
For clients developing automotive technology or autonomous vehicle solutions, we provide intellectual property protection, technology licensing agreements, and regulatory guidance for innovative automotive solutions including connected car technologies, autonomous driving systems, and mobility-as-a-service platforms.
Environmental considerations are central to automotive operations, with EU and Hungarian regulations establishing stringent requirements for emissions control, waste management, and sustainable manufacturing practices. Foreign automotive businesses must integrate environmental compliance into their operational planning from project inception.
We advise on environmental permitting requirements for automotive manufacturing facilities, including air quality permits, waste management authorizations, and environmental impact assessments for large-scale automotive projects. We advise on legal aspects of environmental permitting.
Climate change mitigation strategies and circular economy principles are becoming essential components of automotive business planning. We assist clients in developing carbon reduction strategies, accessing green financing options for electric vehicle projects, and implementing sustainable manufacturing practices that meet both regulatory requirements and OEM sustainability standards.
Automotive operations require specialized workforce management that accommodates shift work, technical training requirements, and compliance with both general employment law and automotive industry-specific regulations. We provide comprehensive employment law support tailored to the unique requirements of automotive businesses.
Our services include structuring employment arrangements for automotive workers, including skilled technicians, engineers, and production personnel. We advise on compliance with working time regulations for shift-based manufacturing, health and safety requirements specific to automotive work environments, and social security obligations for automotive employers.
For clients utilizing foreign automotive specialists, we provide guidance on work permit requirements, professional qualification recognition, and compliance with regulations governing the employment of skilled non-EU workers within Hungary's automotive sector talent attraction programs.
Automotive businesses face unique risks ranging from product liability exposure to supply chain disruptions, regulatory changes, and recalls. We provide comprehensive risk management advice and dispute resolution services that protect our clients' automotive investments and operations.
Our litigation and arbitration capabilities encompass automotive contract disputes, product liability claims, warranty disputes, and commercial conflicts arising from automotive operations. We represent clients before Hungarian courts, administrative bodies, and international arbitration tribunals, with particular expertise in cross-border automotive disputes and recall management procedures.
We also advise on contractual and regulatory aspects of insurance coverage, including product liability, recall insurance, and business interruption protection specifically designed for automotive operations. Our services also include risk allocation in supply agreements.
The automotive industry is increasingly driven by technological innovation, requiring sophisticated intellectual property strategies and technology transfer arrangements. We provide comprehensive IP services for automotive clients, including patent prosecution, trademark protection, and trade secret management for automotive innovations.
Our services encompass negotiation of technology licensing agreements, joint development arrangements for automotive technologies, and IP due diligence for automotive acquisitions. We advise on compliance with competition law requirements in automotive IP licensing and technology sharing arrangements, particularly in the context of standardized automotive technologies and industry consortiums.
For clients developing connected car technologies or autonomous vehicle systems, we provide specialized guidance on data protection compliance, cybersecurity requirements, and liability allocation for automotive software and digital services.
Hungary's automotive sector offers exceptional opportunities for foreign businesses seeking to establish or expand their presence in one of Europe's most competitive automotive markets. At Jalsovszky, we combine deep local expertise with international perspective to deliver practical, effective legal solutions that enable our clients to achieve their automotive business objectives in Hungary.
Our comprehensive approach ensures that foreign automotive businesses receive the specialized legal support necessary to establish successful, compliant, and sustainable operations in Hungary's dynamic automotive ecosystem. Whether pursuing manufacturing investments, supplier relationships, or technology development activities, we provide the legal foundation for long-term success in Hungary's thriving automotive sector.
