Serbia’s manufacturing sector recorded modest growth in the first seven months of 2026, with vehicle production accounting for more than the industry’s overall increase. Manufacturing output rose 1.3% year on year, while motor vehicle and trailer production contributed 1.8 percentage points to that growth, according to the September edition of the Macroeconomic Analyses and Trends bulletin. Excluding the automotive sector, Serbian manufacturing would have contracted during the period.
Vehicle Output and Exports Rise
Vehicle production increased 44.3% in January-July and 29.6% in July alone, supported by production of the Fiat Grande Panda at the Stellantis plant in Kragujevac. The factory expanded its model range earlier this year by adding a petrol-powered version alongside its electric model. Automotive manufacturing generated €3.25 billion in exports, making vehicles Serbia’s largest manufacturing export industry. Vehicle exports increased by almost €1.09 billion, representing 68.5% of the total increase in manufacturing exports.
Contractions Across Other Manufacturing Divisions
The automotive expansion contrasted with declines in several other industrial segments. Basic-metals production fell 12.5% in January-July, while computer and electronic equipment output decreased 18.2%. Production of clothing declined 11.5%, while leather production fell 6.5% during the same period.
Only 10 of Serbia’s 24 manufacturing divisions recorded growth in the first seven months, with those expanding divisions accounting for just 39% of the manufacturing sector. Capital-goods production nevertheless increased 8.8% in July, while output of both durable and non-durable consumer goods declined. The concentration of manufacturing growth around vehicle production in Kragujevac leaves Serbia’s industrial performance increasingly linked to vehicle demand in Italy and Germany, production decisions made outside Serbia and the commercial performance of a limited number of models.
