Serbia’s Ministry of Economy has approved €40.4 million in state subsidies for four automotive companies investing in new production facilities, manufacturing automation and capacity expansion across the country. The agreements cover projects by BMTS Technology, Minth Automotive Europe, Minth Metal Parts Balkan and Xingyu Automotive Lighting Systems, with investments planned in Novi Sad, Loznica, Šabac and Niš.
The subsidies are tied to production expansion and employment commitments, with payments and job-creation targets extending through 2030.
BMTS Technology to automate vehicle-equipment production
Novi Sad-based BMTS Technology will receive €3.3 million in state support for a project to automate production of electrical and electronic equipment for motor vehicles. The subsidy represents 25% of the project’s planned €13.3 million cost. The approved funds are scheduled to be paid in three instalments through 2029. BMTS Technology is owned by Germany-based BMTS Technology International, which manufactures turbochargers for internal combustion engines. The group has production facilities in Serbia, Germany, China, Mexico and Austria. The group reported €631.1 million in consolidated revenue in 2024.
Minth projects account for most of the subsidies
Two companies belonging to the Minth Group will receive the largest combined portion of the newly approved state support. Minth Automotive Europe, based in Loznica, has been allocated approximately €17.3 million to construct a new automotive-parts factory. Under the subsidy agreement, the company is required to employ at least 600 permanent workers by the end of 2026.
A second Minth company, Minth Metal Parts Balkan, will receive €11.6 million for construction of a new production facility in Šabac. The plant will manufacture decorative metal components for the automotive industry, while the company must employ at least 220 workers by the end of 2028. The Minth Group designs and manufactures body components, roof racks, decorative elements and other automotive equipment. Its production network includes facilities in China, the United States, Mexico, Thailand and Germany.
Xingyu to build automotive-lighting plant in Niš
The remaining €8.2 million in approved subsidies will be provided to Chinese company Xingyu Automotive Lighting Systems for construction of a new automotive-lighting factory in Niš. The project is expected to create at least 100 jobs by the end of 2030. Xingyu operates six manufacturing plants, including five in China and one in Serbia. According to information included in the subsidy agreement, the group generated more than €1 billion in consolidated revenue in 2022 and employed nearly 8,600 people. Its principal markets are China, Germany, Japan and the United States.
