During World War Two, from late 1944 to mid-1945, the cogwheel railway trains did not run, later they transported wood from the hills to the city. Freight traffic stopped over time, and some people even suggested discontinuing the service due to the growing number of buses. The cogwheel railway was eventually saved and became a test case for public transport on vehicles without a conductor to collect fares on board. On December 4, 1961 KN signs (meaning no conductor on board) first appeared on rack railway trains.
The cog railway was taken over by the Budapest Transport Company (BKV) in 1968, and in 1973 the line was completely rebuilt to celebrate the 100th anniversary of the merger of Buda, Pest and Obuda into Budapest. The track was renewed replacing the Riggenbach system with the Strub cogwheel system, the line voltage was increased to 1,500V, high platforms were built at the stations, a new station was built at the Janos hospital, the terminal at Varosmajor was rebuilt, and new types of engines and carriages were purchased. The past decades saw numerous renovations and upgrades: a computer-controlled security system was installed in 1992 and cyclists can also use the service since 1993.
The cogwheel railway (formally tram number 60 since 2008) is currently facing serious challenges in terms of technology and traffic. Regular maintenance is carried out to ensure its safe operation until funds are available for fully upgrading the cog railway service.
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