The European automotive industry is expanding its research and development (R&D) footprint in response to trends such as electrification, autonomous driving, and digitalization. Among these, the Central and Eastern European region — including Hungary, Poland, the Czech Republic, and Slovakia — has become an increasingly attractive hub thanks to its strong pool of engineers and competitive cost environment. Major European OEMs and Tier1 suppliers have successively established R&D centers in this region. This article provides an overview of these R&D centers and their distinctive features.
European Automakers (OEMs)
- Audi Hungaria (Győr, Hungary) – Audi’s production hub, which manufactures engines and electric drive units alongside vehicle assembly. In 2001, it established the Technical Development division, now employing around 670 specialists who work on everything from engine and e-drive development to complete vehicle integration and testing. It is recognized as Audi’s third-largest development center and provides development services across the Volkswagen Group.
- Škoda Auto (Mladá Boleslav, Czech Republic) – Škoda’s headquarters plant houses its main technical development division, responsible for full vehicle development, prototyping, and testing. Mladá Boleslav serves as the company’s R&D hub, covering all processes from new model design to production ramp-up. The site is equipped with prototype build facilities and testing laboratories, supporting the development of Škoda’s latest models, including EVs. (The specific name of the technical center is not officially disclosed but functions under Škoda’s Technical Development division.)
(Note: Other OEM sites such as Mercedes-Benz in Kecskemét, Hungary, and Jaguar Land Rover in Nitra, Slovakia, operate manufacturing facilities but do not publicly disclose dedicated R&D divisions, and are therefore omitted from this list.)
European Automotive Tier1 Suppliers
- Robert Bosch GmbH (Germany) – Bosch Engineering Center Budapest (Budapest, Hungary): Bosch operates one of the largest R&D hubs in Central Europe here. Established in 2005, it now employs about 2,700 people, working on autonomous driving, ADAS, chassis control, and powertrain electrification. It is the only Bosch site that integrates all six automotive business sectors, and it contributes globally, including full prototype testing.
- Continental AG (Germany) – Continental AI Development Center (Budapest, Hungary): Continental has set up an AI-focused development center in Budapest, where over 100 engineers work on next-generation ADAS software based on neural networks. With more than 1,000 R&D staff in Hungary, Continental is expanding its presence. The site is also complemented by test tracks and multiple production plants in Hungary, enabling end-to-end development and validation.
- Continental Automotive Czech Republic (Germany) – Continental R&D Center (Brandýs nad Labem, Czech Republic): Located adjacent to Continental’s electronics plant, this independent R&D center develops and prototypes products such as car radios, multimedia displays, clusters, HVAC panels, and telematics units. The center also supports other Continental locations, handling prototype validation and global product refinement.
- Valeo (France) – Valeo R&D Center (Prague, Czech Republic): Opened in 2002, this large R&D hub focuses on ADAS and thermal systems for vehicles. With 700–900 engineers, it has become a core site for driver assistance technologies (e.g., parking assist, emergency braking) and thermal management systems for EVs. The site also operates its own proving ground in Milovice, allowing full validation processes.
- ZF Friedrichshafen AG (Germany) – ZF Engineering Plzeň (Plzeň, Czech Republic): ZF runs a development center in Plzeň with around 250 staff. It includes prototype workshops, tooling, and test facilities (climatic chambers, endurance benches). The center develops transmissions, chassis systems, and mechatronics, with capabilities for rapid prototyping using 3D metal printing.
- Schaeffler (Germany) – Schaeffler Development Center (Kysuce, Slovakia): Schaeffler opened a state-of-the-art development center in Kysuce in 2023, focusing on hybrid modules, electric axles, and advanced chassis components. More than 350 engineers are already active, with plans to expand to 500 by 2025. The co-location with its production site enables seamless feedback between design, prototyping, and mass production.
- Knorr-Bremse (Germany) – Knorr-Bremse R&D Center (Kecskemét, Hungary): The global leader in commercial vehicle braking systems operates an R&D division in Kecskemét, Hungary. With about 1,000 employees, the site develops and tests brake systems, from compressed air units to ABS valves and electronic brake control. Pre-development for next-generation autonomous truck systems is also underway.
- HELLA (Germany, part of Forvia Group) – HELLA Lighting R&D Center (Bánovce nad Bebravou, Slovakia): In 2021, HELLA opened a rear lamp development center at its large Slovak plant. Starting with about 35 designers, the center has grown to over 100 staff by 2023. The facility covers full processes from specification and design to validation and mass production, serving multiple European OEMs.
- Brose (Germany) – Brose Development & Design Center (Prievidza, Slovakia): Brose established its first Eastern European development center here in 2017. The site develops mechatronic components such as power windows, liftgates, and seat adjustment systems. It integrates R&D and production on the same site, enabling rapid knowledge transfer. In 2019, electronics capabilities were added, expanding into ECU and sensor development. The center also engages in prototype development for new mechatronic products.
- Faurecia (France, part of Forvia Group) – Faurecia R&D Center (Grójec and Wałbrzych, Poland): Faurecia established an R&D presence in Poland in 2002, focusing on automotive seating components. Today, its Polish sites develop and test seat rails, frames, and recliners, acting as a global engineering hub for Faurecia by supporting concept design, prototyping, validation, and industrialization.
Conclusion
As shown, Hungary, Poland, the Czech Republic, and Slovakia host a significant number of R&D and prototyping centers that underpin the European automotive industry. These facilities are active in diverse domains — autonomous driving, ADAS, electrification, electronics, lighting, and seating — while maintaining close integration with local manufacturing and test facilities to accelerate the commercialization of new technologies.
Central and Eastern Europe will continue to serve as a vital hub for both development and production, strengthening its role in the global automotive landscape.
Reference
https://www.audi-mediacenter.com/en/audi-at-the-hungary-site-gyor-5570/profile-of-location-5571
https://www.boschmediaservice.hu/en/press_release/bosch_driver_assistance_automated_project-293.html
https://siteselection.com/your-rd-hub-in-central-and-eastern-europe/
https://www.valeo.com/en/czech-republic-prague-rd-center
https://www.automotiveworld.com/news-releases/zf-rd-center-pilsen-extended/
https://www.schaeffler.com/en/media/press-releases/press-releases-detail.jsp?id=87922497
https://truck.knorr-bremse.com/en/hu/about-us/knorr_bremse-hungary
https://spectator.sme.sk/business/c/slovak-engineers-will-develop-rear-lights-for-cars
