·  The region’s passenger car production annual growth rate is three times higher than the European average, while sales growth is four times bigger

·  Slovenia and Bulgaria score highest in new passenger cars per inhabitant

·  Romania leads vehicle manufacture with 57.1% of the region’s total output

Southeast Europe is among the world’s fastest growing new passenger car markets, according to regional business intelligence provider SeeNews’ latest industry report, Southeast Europe: The New Hot Destination of the Global Automotive Industry, presented yesterday at SEE Automotive Connect & Supply conference in Novi Sad, Serbia. The event gathers representatives from over 150original equipment manufacturers and Tier 1 and 2 companies, connecting them with relevant public institutions to further boost the development of the automotive industry in the region.

In 2017, vehicle production in Southeast Europe marked a 14-percent annual growth rate against a European average of 3.7% and 1.9% globally, while passenger car sales grew by 9.7%, as compared to Europe’s 3.1-percent and global 2.4-percent annual growth rates. This upward trend, evidenced in all local markets but Macedonia, is attributable to the region’s macroeconomic stability.

The Southeast Europe: The New Hot Destination of the Global Automotive Industry report further highlights that, despite dynamic growth rates, the number of cars per 1,000 Southeast Europeans remains far below the European average. Nonetheless, it concludes that these figures demonstrate the automotive sector’s potential for development in the region.

Eurostat data indicates that Slovenia and Bulgaria topped passenger car ownership rankings with 531 and 441 vehicles per 1,000 inhabitants in 2016, respectively, with the latter country outpacing Slovenia in terms of growth. Notwithstanding its undisputed leadership in vehicle production, Romania ranked fourth with only 261 cars per 1,000 inhabitants. It accounted for 57.1% of the region’s vehicles output in 2017 versus 62.7% in 2016, but this share is expected to grow again in 2018 thanks to the introduction of Ford’s EcoSport model at the end of 2017. In March 2017, Japan’s Mitsubishi Motors also announced that it was considering Romania, Hungary and Slovakia as options for a EUR 200-million new production site.

As per the increase in combined revenue of all companies entering SeeNews’ annual TOP 100 SEE ranking, the automotive sector in Southeast Europe shows development in the 2007-2016 period unmatched by any other industry in the region. With a compound annual growth rate of 14.7% between 2012 and 2017, it is set as a state priority in most SEE countries – including Romania, Serbia, Bulgaria and Macedonia, where local governments are implementing incentives to attract and facilitate foreign investment. Closer collaboration with the IT sector presents a key challenge, but is expected to boost the sector’s competitiveness in the world automotive market. In a global context, the region’s accelerating macroeconomic growth is set to reflect on the automotive industry, while protectionist measures implemented in some countries may stall development.

SeeNews’ Southeast Europe: The New Hot Destination of the Global Automotive Industry report can be viewed here. Further coverage of the SEE Automotive Connect & Supply conference is available on SeeNews.

About SeeNews:

SeeNews is Southeast Europe’s premier independent business intelligence provider, delivering a 360-degree perspective on the region to help businesses make informed decisions.

With more than 15 years on the market, we are a one-stop shop for all your business intelligence needs. Our coverage spans an unrivalled 123 industries and sectors, 11 countries, and 800,000+ companies, offering breaking news, insightful commentary and in-depth market research and analysis via our integrated online platform. As a strategic partner to businesses, we tailor our offering to our clients’ individual needs via our premium research-on-demand reports and bespoke newsletter service.

SeeNews is also the publisher of TOP 100 SEE – Southeast Europe’s first and only annual business ranking of the biggest companies in the region, which marked its tenth edition in 2017.

For more information, visit www.seenews.com