Serbia’s automotive industry has become a major contributor to merchandise-export growth as production at the Stellantis plant in Kragujevac expands.
Motor-vehicle exports rose 51.1% year on year in the first half of 2026, as production of the Fiat Grande Panda and, partly, the Citroën C3 moved beyond their initial ramp-up phase. Motor vehicles generated almost three-quarters of the increase in Serbia’s total merchandise exports during the period, strengthening the sector’s contribution to the country’s external trade performance.
Automotive industry increases its export share
The automotive sector now represents almost 20% of Serbian goods exports, up from 15.7% in 2025 and approximately 12% to 13% several years earlier. Production data also point to a significant increase in industrial activity. Motor-vehicle manufacturing grew 43.3% year on year in the second quarter of 2026, contributing to a 3.3% increase in total manufacturing output.
The expansion of vehicle production has a direct bearing on Serbia’s goods-trade position. The country has traditionally recorded a goods-trade deficit, while increased export-oriented automotive production raises the value of manufactured goods sold abroad. The automotive expansion also coincides with stronger European electric-vehicle demand. EV registrations increased approximately 40.5% year on year in the first half of 2026, while production capacity at the Kragujevac facility is expected to increase further.
Supplier and logistics activity expands alongside vehicle output
The effects of higher vehicle production extend beyond finished-car exports. Increased utilisation at the Kragujevac plant supports component suppliers, industrial services and logistics, while also generating demand for imported intermediate goods. The rapid increase in the automotive sector’s contribution to export growth also increases its significance for Serbia’s overall trade performance. With motor vehicles responsible for almost three-quarters of incremental merchandise-export growth, production developments at a limited number of automotive plants have increasingly important implications for national trade data.
European EV demand, vehicle pricing, product competitiveness and capacity utilisation at Kragujevac will therefore have a growing bearing on Serbia’s trade balance.
Manufacturing is projected to contribute approximately 0.3 percentage points to GDP growth in both 2026 and 2027, with electric-vehicle production identified as one of the principal drivers. The expansion of vehicle assembly also raises the importance of developing a deeper domestic supplier base and increasing the share of local value added generated within Serbia’s automotive production chain.
