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After 10 races, the Mexican was second overall but a huge 99 points behind dominant teammate and double world champion Max Verstappen when he slammed into the tyre wall at turn five.
“I cannot believe this,” said Perez over the team radio, with the stricken car looking like it had suffered some heavy damage.
“I clipped the grass, I think on braking, I just lost it,” he added.
The Mexican has failed to qualify in the top ten in four of his previous five races, with only one podium finish in that span, and needs a great weekend with Red Bull reserve Daniel Ricciardo more in the mix as a possible replacement.
Perez was forced to skip the rest of the session as the car was towed back to the pits on a truck for mechanics to begin what might be significant repairs.
“It’s obviously frustrating…hopefully it (the damage) is contained mainly to the front right corner, which hopefully will be repairable in time for the next session,” said team boss Christian Horner.
“It was unfortunate, he just put a wheel on the grass and made a mistake in Turn Five.
“Hopefully he won’t have lost too much through this session because in these conditions people aren’t getting many laps in. But obviously not an ideal way to start the weekend.”
Mercedes’ George Russell, who won his first career pole position in Hungary last year, finished first overall with a lap time of 1:38.795 seconds.
During the stoppage, rain began to fall and became heavier.
Oscar Piastri of Australia finished second for McLaren, with Lance Stroll of Aston Martin third and Lando Norris of McLaren fourth.
Seven drivers, including Verstappen and Ricciardo, did not set a time.
One of the seven was Mercedes’ seven-time world champion Lewis Hamilton, who won a record eight times in Hungary. The Briton exited his car before the session’s end, knowing he had nothing to gain from being on track in the conditions.
With 14 minutes remaining, Ferrari’s Carlos Sainz also pulled out the red flags after he beached his car on a kerb at turn three.
(With inputs from Reuters)
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