Vladimir Tomic| Assistant Director for FDI AUTOMOTIVE INDUSTRY IN SERBIA 2012 Serbia Investment and...

Vladimir Tomic| Assistant Director for FDI

AUTOMOTIVE INDUSTRY INSERBIA 2012

Serbia Investment and Export Promotion Agency

PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012.



TRADITION OF AUTOMOTIVE INDUSTRY IN SERBIA

Current no. of Companies: around 100 Number of Employees: around 24,000 Turnover 2010: 861.7 million EUR

Largest Companies: Fiat Automobiles Serbia Michelin - Tigar Tyres Trayal CIMOS Livnica Kikinda AI DAD Dräxlmaier Yura Corporation d.o.o.

1939

1954

1965

1971

1988

2008

2012



AUTOMOTIVE INDUSTRY IN SERBIA TODAY

Passenger cars

Tires

Car batteries

Casted & machined parts

Ball bearings

Wiring harness

Trucks

Seat covers



AUTOMOTIVE FDI IN SERBIA 2004



CORNERSTONE OF AUTOMOTIVE SECTOR IN SERBIA

• Joint Venture between Fiat Group Automobile and the Republic of Serbia Government;

• Total investment at around 1 billion EUR;

• Starting from 2012, FAS will set-up the production of at least 200,000 units per year ;

• The new factory should export 1.5 billion EUR/year worth of cars;

• Up to 85% of new model components will be produced in Serbia;

• 2,400 jobs will be created by Fiat, while 10,000 more by suppliers and sub-suppliers;



TIER 1 SUPPLIERS

Dashboard

IP crossbeam

Door Panel

Seat Assembly

Tire Assembly

Front & Rear Painted Bumper

Exhaust assembly

Suspension

Wiring HarnessStamping and Welding



SERBIA COST TABLE

Typical monthly salaries: Net: Total:Minimal salary: 184 € 303 €Average salary in automotive ind. 305 € 503 €Average blue collar salary 250 € 412.5 €Average white collar salary 550 € 907.5 € Working week: 40h Overtime: 8h/week 4h/dayNo. of shifts: max 3 Utilities: Electricity cost: 0.05 €/kWhGas cost: 0.42 €/m3Water cost: 0.2 €/m3 Building: Average rent cost: 4 €/sqmAverage building cost: 400 €/sqm



SERBIA FREE TRADE AGREEMENTS

European Union EFTA

CEFTA Turkey Belorussia

Russia Kazakhstan

USA – preferential

trade 0% - import duties; 0% - export duties



MOST ATTRACTIVE TAX SYSTEM IN EUROPE

Salary Tax VAT

Corporate Profit Tax



GRANT DISTRIBUTION SYSTEM

Standard-scale projects:

• Minimum requirement 1 million EUR investment – standard regions

• Minimum requirement 0.5 million EUR investment – underdeveloped regions

• Minimum 50 new jobs

• Incentives from 4,000 to 10,000 EUR/ every new job created

Large-scale projects:

• Minimum requirement 50 million EUR investment, 300 new jobs

• Up to 20% value of investment



EXAMPLE OF STATE GRANTS

15 million euro investment

1,300 jobs created

5,000 euro per job created

1,300 x 5,000 =

6.5 million euro state subsidies



About SIEPA

Investment Promotion

Information Provision

Location Advisory

Project Management

Project Aftercare



SIEPA LOCATIONS DATABASE

The largest database of industrial and service locations in Serbia – www.serbia-locations.rs

http://www.serbia-locations.rs/



SIEPA SUPPLIERS DATABASE

The largest database of Serbian industry – www.siepa.gov.rs

http://www.siepa.gov.rs/



KRAGUJEVAC SEE AUTOCOMPONET 2012

May 9th 2012

SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY3, Vlajkoviceva St.

11000 Belgrade, SerbiaPhone: +381 11 33 98 55 0

Fax: +381 11 33 98 81 4E-mail: [email protected]

www.siepa.gov.rs


Vladimir Tomic| Assistant Director for FDI AUTOMOTIVE INDUSTRY IN SERBIA 2012 Serbia Investment and...

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