Automotive companies in Romania, Bulgaria and Serbia book 20% rise in revenue in 2022 - SeeNext

The automotive sector continued to be one of the region’s largest employers, tallying over 300,000 employees in 2022 - up by 0.8% on the year, according to the report titled Automotive Industry in Southeast Europe: Powering up for an electric future. The report analysed the performance of 593 core automotive companies across the three countries from 2020 to 2022.

Should the growth trend continue, the aggregate operating revenue of the automotive sector in the three countries is forecast to reach over 60 billion euro by the end of 2025.

Romania led the region in terms of battery electric vehicle (BEV) sales in 2023, with new registrations rising by an annual 32% to 15,217. Bulgaria’s BEV registrations more than doubled to 1,816 in 2023, while Serbia’s fleet of electric vehicles rose to 2,699 in February 2024 from only 1,700 in mid-2023. Despite growing in popularity, the combined share of BEVs and plug-in hybrid vehicles (PHEVs) accounted for less than 0.5% of passenger cars in each country.

Significant state subsidies promote the uptake of EVs in Romania and Serbia, whereas in Bulgaria, these are exclusively aimed at the public sector. However, private consumers opting for all-electric engines are exempt from local taxes for these vehicles and enjoy certain parking privileges.

In terms of charging infrastructure, the three countries trail behind most European nations. Romania was home to 3,010 electric recharging points in the first quarter of 2024, while Bulgaria hosted 2,059. Serbia only tallied around a hundred charging stations as of November 2023.

Of all automotive companies in the three markets, 67% were car parts and accessories manufacturers, while electronics producers accounted for 17%. Car exterior producers constituted 9.9% of the aggregate, while car and tyre manufacturers comprised 3.5% and 2%, respectively.

Foreign investors from thirty countries held majority stakes in over 60% of the analysed companies. Germany was the primary source of foreign investment, with majority shareholders in 114 companies. French investors were a distant runner-up with majority stakes in 38 companies, while the Netherlands and Italy were third on the podium, each controlling 33 companies across the three analysed countries.

($=0.9321 euro)