Boston, MA -- (SBWIRE) -- 08/03/2012 -- This year (2012) is set to be a critical year for the Bulgarian auto industry, with the entry of Great Wall Motors marking the return of auto manufacturing in the country. From non-existent production in 2011, BMI predicts that 27,000 vehicles will be assembled in Bulgaria in 2012. All will be produced at the Lovech plant, which has a designed capacity of 50,000 units a year, though we do not expect this total to be reached by 2016, rather production is likely to be just shy of 33,000 at 32,618 units. Most of the vehicles produced will be exported and with the beginning of production this year Bulgaria will become a net exporter of new vehicles. Sales of new vehicles are expected to slow in 2012 to 3.5% y-o-y, down from 17.71% in 2011.
View Full Report Details and Table of Contents
The success of the Great Wall venture in Bulgaria and the wider EU is critical to the future of the Bulgarian auto industry. Should the Lovech plant prove successful, the country may soon be a booming site for Chinese car production. The Bulgarian partners - Litex - has said that the plant is in essence a pilot project to determine if further investment is worthwhile. Over the coming five years the Bulgarians hope that employment at the plan will increase to 1,000 from the current 200 staff employed and that the full EUR300mn earmarked for investment into Lovech is actually allocated. One early indicator of the health of the project is that the plant passed Great Wall's own quality audit at the first inspection.
Since the plan was first hatched in 2009, increasingly close ties have developed between Bulgaria and China. Before even the briefest of judgements can be made on the assembly at Lovech, the Chinese have also apparently agreed to establish a bus manufacturing plant in Bulgaria. While the full details will not, according to the Litex representative in China, be revealed until late 2012 it does appear increasingly certain that some small-scale assembly of buses will take place in Bulgaria, adding a new dimension to the local industry.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Transportation research reports at Fast Market Research
You may also be interested in these related reports:
- Mexico Autos Report Q3 2012
- Qatar Autos Report Q3 2012
- Argentina Autos Report Q3 2012
- Pakistan Autos Report Q3 2012
- Algeria Autos Report Q3 2012
- Malaysia Autos Report Q3 2012
- Vietnam Autos Report Q3 2012
- Brazil Autos Report Q3 2012
- Serbia Autos Report Q3 2012
- Venezuela Autos Report Q3 2012