| Market Research A to Z | Company Profiles A to Z | Register | Contact Us |
| +44 (0) 203 086 8600 Call us on |
Serbia Autos Report Q2 2009
Market |
Automotive and Parts |
Report Type |
Market Research |
Country |
|
Published |
21 May 2009 |
Number of Pages |
49 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
In Q408, the number of newly registered passenger cars fell by 4.1% as Serbian consumer spending began to be impacted by the economic crisis. The National Bank of Serbia stated that the overall economy shrank by 3% in Q408. The report forecasts a 1.6% contraction in 2009, and we expect domestic sales of autos to be negatively impacted. However, the market should still see growth, driven by the extra production provided by the new Zastava-Fiat factory.
On January 30 2009, the Serbian government signed a deal with Italian automotive manufacturer, Fiat. It meant that 15,000 units of Fiat’s Punto model will be produced in Serbia, beginning in March of the same year. This marks the first phase of the EUR700mn (US$900mn) agreement that was originally made between the parties in September last year. Under the agreement, Fiat will own 70% stake in the Serbian state-owned carmaker, Zastava Automobili, with the government retaining 30%.
Serbian Deputy Prime Minister Mladjan Dinkic revealed that that the cars will be made in Zastava's plant in Kragujevac, central Serbia, where the manufacturer currently produces its Zavasta 10 (a brand nearly identical to the Fiat Punto). As such, production of the Zavasta model will be replaced by at least 15,000 units of the Fiat Puntos, which are to be sold in the 'Serbian market and in neighbouring countries' (a spokesperson revealed).
Serbia's co-operation with Fiat is hailed as the largest foreign investment 'so far' in the country and the partners are looking to reach an annual production target of 200,000 units by the end of 2010, and hope to add 100,000 units each subsequent year. The partnership deal, reached last year, gives Fiat a 70% stake in Zastava in return for its EUR700mn investment in Serbia.
The Serbian government is expecting the Zastava-Fiat joint venture (JV) to lead to export-led growth in Serbia. Fiat's entry in Serbia will also help to attract around 100 Fiat contactors, which will be investing at least EUR200mn in the country. Serbia's Investment and Export Promotion Agency (SIEPA) estimates that increased export activity will lead to the creation of some 10,000 direct jobs in the industry. The partnership between Fiat and the Serbian government alone will create 2,400 direct jobs.
Last Viewed
Serbia Autos Report Q2 2009Travel and Tourism - Armenia
Duty Free Retail in Norway
Faceoff - 4G vs WiMax vs WiFi
India Autos Report Q4 2009
Automotive and Parts Company Profiles
Automotive and Parts Company Profiles contain up to date financial, strategic, operational, SWOT analysis and product information on the activities of thousands of automotive and parts companies.
Become an Affiliate
Do you manage an industry specific website or blog? Are you looking to monetise your web traffic further? Are you a B2B website?
Why not offer your visitors industry specific strategic market reports and company profiles? Our Affiliate Program enables you to provide quality content on your website and to earn money from passing on visitors to our website. If a sale is made from your visitor, you earn commission (a fixed percentage of the price of a product).
Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.
