Southeast Europe the New Hot Destination of the Global Automotive Industry
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Southeast Europe The New Hot Destination of the Global Automotive Industry 2019 One-stop shop for business intelligence for Southeast Europe For over 15 years, we have given 360-degree perspective on Southeast Europe, helping professionals across industries make informed business decisions. 13,000+ 25,000+ 800,000+ proprietary stories annually premium reports company profiles Get 1 month free premium access to SeeNews.com Go to seenews.com/promo and enter promo code SEEAUTO2018 [email protected] www.seenews.com Southeast Europe The New Hot Destination of the Global Automotive Industry By Tsvetan Ivanov, Business Analyst at SeeNews Cover photo by Edouard Ki, Unsplash Contents Vehicle production 2 Romania – the face of the SEE automobile sector 2 Slovenia – the driver of growth 2 Serbia – in search of new markets 3 Bulgaria – who will be next? 3 Vehicle sales 3 Exports 4 Skoda ahead of local brands at the top in SEE 4 Automobile parts and components 4 Macedonia – booming automotive industry without automobiles 6 Alternative fuel vehicles – an emerging opportunity 6 Projects and investments 8 Trends 8 The automotive industry Total Vehicle Production (Units) in Southeast Europe 2017 2016 2015 (SEE)1 is represented by all Romania 359,250 359,306 387,177 subsectors – manufacture Slovenia 189,852 133,702 133,092 and distribution of passenger cars, light Serbia 79,912 80,320 83,630 commercial vehicles, SEE 629,014 573,328 603,899 buses and coaches, Source: OICA medium-sized and heavy- duty trucks and buses, Passenger Car Production (Units) alternative fuel vehicles 2018* 2017 2016 2015 (hybrids and electric cars), Romania 470,000 359,240 358,861 387,171 and automotive parts Slovenia 210,000 189,852 133,702 133,092 and components. It is Serbia 60,000 79,360 79,360 82,400 among the most rapidly expanding industries SEE 740,000 628,452 571,923 602,663 in the economies of all * Preliminary estimates. Source: OICA countries in the region of 9.7% in the region significantly ex- 57.1%. This is caused by the introduc- in terms of contribution ceed the European average of 3.1% and tion of the EcoSport model by Ford in the global average of 2.4%. This can be end-2017, the biggest investment in to the GDP, volume explained with the constantly increas- the automotive sector in the country in of production and ing demand for new cars in line with the last years, the sustainable growth of the overall sound economic growth in Dacia and by the crisis in Serbian Fiat job creation, as well SEE, paired with the preference of con- manufacture. sumers towards local brands, especially as one of the leading on the region’s largest market Roma- According to the Romanian Car Mak- sectors attracting FDI. nia. Passenger cars assembly in SEE is ers Association (ACAROM), Dacia pro- concentrated in three countries – Ro- duced a total of 335,262 vehicles in mania, Slovenia and Serbia. 2018, up from 313,833 units in 2017. In Vehicle production the period January – November 2018, Ford increased its production threefold Romania: The face of the year-on-year to 132,159 vehicles, al- Motor vehicles production in SEE re- most all of which under the EcoSport ported a sound growth in 2018, ac- SEE automobile sector SUV model. Thus, provisional data es- cording to preliminary data by the four timates for the output of automobile passenger car producers in the region The automotive industry in Romania industry in Romania in 2018 stands at – Romania’s Automobile Dacia and consists of the two major passenger more than 470,000, or a 35% annual Ford Romania, Slovenian Revoz and car producers, Dacia and Ford, and increase. FCA Srbija. Their combined annual out- several others with limited produc- put stands at more than 740,000 units tion numbers, supported by more than More than 70% of the vehicles manu- provisionally, or 18% more than the 600 original equipment manufacturers factured by Dacia in 2018 were Duster production in 2017. The rise is caused that supply both local plants and pro- – 236,921 units. The other three mod- primarily by the launch of a new mod- duction sites throughout Europe with els produced in the country were San- el by Ford Romania, which tripled the automotive components. The sector’s dero with 42,146 vehicles, Logan with company’s annual figures. Automobile contribution was 13% of the GDP and 33,841 vehicles and Logan MCV with Dacia and Revoz also increased slightly provided jobs to more than 200,000 22,354 vehicles. their output, while FCA Srbija cut pro- employees in 2017. duction volumes by a quarter com- In 2018 Dacia sold 519,088 cars in the pared to 2017 and registered a decline The country is the undisputed leader EU in 2018, a 12.0% y/y increase. Ac- in output for second consecutive year. in automobile manufacture in SEE with cording to the French Automobile more than 470,000 vehicles produced Manufacturers Committee it exported In 2017 a total of 629,014 vehicles in 2018, a share of 63.5% in SEE’s mo- 140,326 vehicles to France, up by 19.1% were manufactured in SEE, according tor vehicles output. In terms of pas- compared to 2017. Germany’s Federal to the International Organization of senger cars manufacture, the picture Transportation Authority reported that Motor Vehicle Manufacturers (OICA). is similar, as they constitute more than 71,746 vehicles under the Dacia brand This represented almost 3.0% of the 99% of the total vehicles manufacture were sold in Germany in 2018, up by total European and 0.6% of the glob- in the country. Romania’s dominance 14.5% y/y. al vehicles production, shares staying in the regional industry bounced back unchanged during the last three years. in 2018 to its 2016 level, while in 2017 Romania concentrates on production However, in 2017 annual growth rates Romania’s share in SEE had fallen to of low-budget cars and has gained 1 Southeast Europe (SEE) includes Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Kosovo, Macedonia, Moldova, Montenegro, Romania, Serbia and Slovenia 2 Southeast Europe – the New Hot Destination of the Global Automotive Industry considerable share in two segments of market, with a small share exported to pared to 2017, which was the second the global market - customers in the Russia. highest annual growth rate in the EU. SEE region and other emerging mar- Slovenia was the second largest new kets with lower incomes, and custom- Provisional data by the company shows car market among the EU members in ers in Germany, France, Spain and oth- that the output of the plant in 2018 was the region with 72,835 new cars regis- around 60,000 cars, compared to al- er western European countries with a tered in 2018 and a modest annual rise most 80,000 in 2017 and 83,630 in preference for low-budget cars. of 2.7%. Croatia was the third fastest 2016, which however is only half of the growing new passenger car market in annual capacity of Fiat’s plant. Serbia Europe with an annual growth rate of Slovenia: The driver was the only passenger cars producing 18.7%, which led to a total number of nation in SEE to not report an increase 59,856 registrations in 2018. Bulgaria of growth of its output compared to 2017. This also reported a sound increase, of 9.9% can be explained by the comparatively on the year, and new passenger cars Slovenia’s automotive industry gen- low demand on the domestic market, registrations reached 34,332 in 2018, erated 10% of the country’s GDP and where most of the Fiat 500L cars are compared to 31,244 in 2017. 12.5% of its exports of goods in 2017. sold – Serbia had the lowest annual Local passenger cars manufacturer growth in car sales among the major OICA reported that the total SEE mo- Revoz d.d. alone generated 3.7% of SEE national markets in 2017. tor vehicles market, excluding Mon- Slovenia’s GDP and 4.4% of its total ex- tenegro and Kosovo, stood at 401,612 Being a priority sector, the automotive ports in 2017. vehicles in 2017, an increase of 13.8%, industry can rely on the government’s compared to 2016. Revoz d.d. is Slovenia’s single passen- ambition to attract global strategic partners to establish new production ger cars manufacturer. Since 2004 the Out of the total vehicles sold in 2017, or revive suffering and non-functional company is owned by Renault and pro- 333,463 were passenger cars. SEE was plants in the country. among the fastest growing new pas- duces models under the French brand senger car markets in the world, with – as of end-2018 they include Twingo, an annual growth rate of 14.0% in 2017 Smart Forfour and Clio. It sells its out- Bulgaria: Who – far above the global average of 1.9% put both on the domestic market and will be next? and the European average of 3.7%. abroad, the top export destinations be- Driven by the sound macroeconom- ing France, with 38% of the exports in Automobile assembly in Bulgaria has a ic environment, all but one national 2017, Germany with 17% and Italy with long tradition of unsuccessful attempts market in the region grew. Moldova 13%. by international car manufacturers, and Bosnia and Herzegovina were the such as Fiat and Renault. The latest leaders with rates exceeding 30% y/y, Preliminary estimates show production attempt collapsed at the beginning of while Serbia recorded the most modest figures exceeding 210,000 vehicles 2017, when Chinese car maker Great annual growth of 9.8%.