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Serbia Investment and Export Promotion Agency AUTOMOTIVE INDUSTRY IN SERBIA 2012 Vladimir Tomic| Assistant Director for FDI PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. TRADITION OF AUTOMOTIVE INDUSTRY IN SERBIA Serbia Investment and Export Promotion Agency 1939 1954 Current no. of Companies: around 100 1965 Number of Employees: around 24,000 Turnover 2010: 861.7 million EUR 1971 Largest Companies: Fiat Automobiles Serbia Michelin - Tigar Tyres Trayal CIMOS Livnica Kikinda AI DAD Dräxlmaier Yura Corporation d.o.o. 1988 2008 2012 PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. AUTOMOTIVE INDUSTRY IN SERBIA TODAY Serbia Investment and Export Promotion Agency Passenger cars Tires Car batteries Casted Ball & machined parts bearings Wiring harness Trucks Seat PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. covers AUTOMOTIVE FDI IN SERBIA 2004 Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. AUTOMOTIVE FDI IN SERBIA 2006 Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. AUTOMOTIVE FDI IN SERBIA 2008 Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. AUTOMOTIVE FDI IN SERBIA 2010 Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. AUTOMOTIVE FDI IN SERBIA 2012 Serbia Investment and Export Promotion Agency PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. CORNERSTONE OF AUTOMOTIVE SECTOR IN SERBIA Serbia Investment and Export Promotion Agency • 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 subsuppliers; PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. TIER 1 SUPPLIERS Serbia Investment and Export Promotion Agency Dashboard Exhaust assembly Door Panel IP crossbeam Seat Assembly Suspension Tire Assembly Front & Rear Painted Bumper Stamping and Welding Wiring Harness PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. SERBIA COST TABLE Serbia Investment and Export Promotion Agency Average net salary (EUR) 350 372 370 331 324 275 150 2002 179 168 2003 2004 204 2005 2006 2007 2008 2009 2010 2011 Unemployment rate (%) Typical monthly salaries: Minimal salary: Average salary in automotive ind. Average blue collar salary Average white collar salary Net: 184 € 305 € 250 € 550 € Working week: Overtime: No. of shifts: 40h 8h/week 4h/day max 3 Utilities: Electricity cost: Gas cost: Water cost: 0.05 €/kWh 0.42 €/m3 0.2 €/m3 Building: Average rent cost: Average building cost: 4 €/sqm 400 €/sqm 24.4 21.8 21.6 20 18.8 16.9 14.4 2005 2006 2007 2008 2009 2010 PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. 2011 Total: 303 € 503 € 412.5 € 907.5 € SERBIA FREE TRADE AGREEMENTS Serbia Investment and Export Promotion Agency European Union EFTA Russia Kazakhstan CEFTA Turkey Belorussia USA – preferential trade 0% - import duties; 0% - export duties PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. MOST ATTRACTIVE TAX SYSTEM IN EUROPE Serbia Investment and Export Promotion Agency Serbia Serbia 12% 18% Croatia 15% Slovakia 20% Czech 15% Czech 20% Bulgaria 20% Romania 16% Poland Poland 18% Slovakia Romania 19% Bulgaria 5% Salary Tax 10% 15% 20% 25% 25% Hungary 24% 0% 24% Croatia 20% Hungary 23% 30% 27% 0% Serbia 10% Bulgaria 10% 5% 10% 15% VAT Romania 16% Poland 19% Slovakia 19% Croatia 20% Czech 20% Hungary 20% 0% 5% 10% Corporate Profit Tax PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. 15% 20% 25% 20% 25% 30% GRANT DISTRIBUTION SYSTEM Serbia Investment and Export Promotion Agency 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 PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. EXAMPLE OF STATE GRANTS Serbia Investment and Export Promotion Agency 15 million euro investment 5,000 euro per job created 1,300 jobs created 1,300 x 5,000 = 6.5 million euro state subsidies PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. About SIEPA Serbia Investment and Export Promotion Agency Project Aftercare Investment Promotion Information Provision Project Management Location Advisory PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. SIEPA LOCATIONS DATABASE Serbia Investment and Export Promotion Agency The largest database of industrial and service locations in Serbia – www.serbia-locations.rs PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. SIEPA SUPPLIERS DATABASE Serbia Investment and Export Promotion Agency The largest database of Serbian industry – www.siepa.gov.rs PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. KRAGUJEVAC SEE AUTOCOMPONET 2012 Serbia Investment and Export Promotion Agency May 9th 2012 PRESENTATION RIGHTS RESERVED. COPYRIGHT SIEPA. YEAR 2012. Serbia Investment and Export Promotion Agency Thank you for your attention! SERBIA INVESTMENT AND EXPORT PROMOTION AGENCY 3, Vlajkoviceva St. 11000 Belgrade, Serbia Phone: +381 11 33 98 55 0 Fax: +381 11 33 98 81 4 E-mail: [email protected] www.siepa.gov.rs