Six central European countries produce 3.26 million units in 2010, up by 6% from 2009

VW produces New Small Family in Slovakia while Daimler manufactures A-/B-Class in Hungary

2011/07/28

Summary
In six central European countries, production grew by 7% to 3.26 million while sales volume declined by 4% to 780,000 in 2010
Czech: Hyundai boosts production capacity to 300,000 vehicles and to 500,000 transmissions in 2012
Poland: 1.01 million, 910,000, and 890,000 vehicles are produced in 2008, 2009, and 2010, respectively
Slovakia: Kia builds a new engine plant while VW produces New Small Family
Romania: Dacia produces Duster, Logan SUV version, while Ford manufactures B-MAX
Hungary: Audi increases production capacity by 3-fold to 125,000 a year while Daimler starts operations of a new plant in 2012
Slovenia: Renault starts production of Daimler's smart four-seater in 2013
Serbia: Fiat starts production of the Uno at the end of 2011
Bulgaria: Great Wall Motor starts operations of a new plant capable of producing 50,000 a year

Summary

This Report outlines the recent activities of OEMs that produce vehicles in six central European countries (Czech, Poland, Slovakia, Romania, Hungary, and Slovenia) (We added two countries - Serbia, where Fiat boosts production capacity, and Bulgaria, where Great Wall Motor builds a new plant).

In the six countries, more than 3 million vehicles were produced per year from 2007. In 2010, 3.26 million, up by 200,000 from 2009, were produced. Most of them are exported to EU countries such as Germany, France, Italy, and the UK as well as Russia. In 2010, sales of compact cars slowed down due to the termination of each European country's scrap incentives. Yet, in 2011, the demand in Europe and Russia is expected to recover.

Among OEMs that newly entered the market, Daimler will begin production of the next models of A-/B-Class in Hungary in 2012, while Great Wall Motor will produce one model each of a hatchback, a pickup, and an SUV in Bulgaria starting in September 2011.

Among OEMs that plan to boost production capacity, Hyundai increases production capacity to 300,000 a year in the Czech Republic in 2012 (production volume in 2010: 200,000), VW to 400,000 in Slovakia by the fall of 2011 (in 2010: 110,000) for producing a low-priced model, the New Small Family, and Audi to 125,000 in Hungary by 2013 (39,000). In addition, Fiat is currently building production capacity of 200,000 a year (15,000) in Serbia.

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