Bulgaria Named Most Attractive Country for Automotive Industry - Survey

Business » INDUSTRY | October 26, 2016, Wednesday // 14:13
Bulgaria: Bulgaria Named Most Attractive Country for Automotive Industry - Survey File photo

Bulgaria ranks first among ten European countries in its attractiveness to the automotive industry, a recent study of Automotive Cluster Bulgaria and Colliers International shows.

In addition, the text outlines the state of the automotive industry as of 2016.

It says the industry employs 33 000 people in 100 large enterprises "producing parts for almost any brand from the global automotive industry."

Using an index specially designed for the survey, the two organizations rank ten countries depending the conditions they offer to the auto industry.

The total revenues of the industry represents 3.5% of the country's GDP, having been EUR 1.55 B last year.

Accordingly, the countries whose attractiveness has been explored are ordered as follows: Bulgaria, Romania, Hungary, Poland, the Czech Republic, Spain, the UK, France, Germany, and Italy.

Low labour costs, EU membership, proximity to clients and producers, low real estate costs, low electricity prices, and tax incentives when doing business in regions with high unemployment rate have been pointed as advantages.

"Challenges", on the other hand, include lack of skilled labor force, bureaucracy, an inefficient legal system, and the fact that the majority of suppliers are located beyond national borders.

To date, there is only one producer with an assembly plant, the others being Tier 1, 2 and 3 suppliers.

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Tags: EU, automotive industry, Automotive Cluster Bulgaria, Colliers International
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