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CEE Region Becoming Increasingly Attractive for Automotive OEMs Finds Frost & Sullivan - If current trends persist, more cars will be made, sold and exported by CEE countries the coming years
CEE Region Becoming Increasingly Attractive for Automotive OEMs Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2010/09/09 - If current trends persist, more cars will be made, sold and exported by CEE countries the coming years.

   
 
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A still avid demand for light vehicles, better export opportunities, relatively low labour costs, a well-developed logistics infrastructure and the presence of leading local automotive suppliers make the CEE region attractive for investors. For its part, Russia can expect dynamic growth in the light vehicle sector if the economic situation improves. Ultimately, however, both in CEE and in Russia, market growth will hinge largely on the recovery of the car loan market.

New analysis from Frost & Sullivan (automotive.frost.com), Russian and CEE Automotive Industry Outlook, finds that light vehicle sales in CEE reached 1.5 million passenger cars and light commercial vehicles in 2009. This is expected to further increase to 2.5 million units by 2015. The Russian light vehicle market reached 1.5 million units in 2009, and will likely reach 3.5 million by 2015. The regions covered in this research service are Czech Republic, Bulgaria, Slovakia, Romania, Slovenia, Poland, Hungary, Turkey, Russia and Ukraine.

"CEE countries, especially Turkey, Poland and the Czech Republic, should see a significant rise in new car sales in the mid- to long-term as personal incomes increase and auto loans become more readily available," says Frost & Sullivan Research Analyst Vitaly Belskiy. "Although still mired by the economic downturn, the Russian market is nevertheless attractive in terms of its sales potential."

Competition will also step up as countries like Bulgaria and Romania enter the arena, offering improving business environments and lower labour costs than Poland, Slovakia or the Czech Republic. The new entrants must however, improve their supplier and logistics networks to be competitive in the long term.

Dynamic development of each country's key competencies in strategic automotive segments like R&D and telematics combined with sustainable government support will enhance CEE countries' position as European automotive production hubs.

"Developing comparative strategies based on innovation and focusing on the production of high value-added products becomes crucial for maintaining a long-term competitive position," concludes Belskiy.

If you are interested in more information on this study, please e-mail Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Russian and CEE Automotive Industry Outlook is part of the Automotive & Transportation Growth Partnership Services programme, which also includes research in the following markets: Russian Logistics Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Russian and CEE Automotive Industry Outlook / M5BA

 
 
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CEE Region Becoming Increasingly Attractive for Automotive OEMs Finds Frost & Sullivan

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