Serbia’s car exports increased 51.1% year on year to around €2.8 billion in the first half of 2026, as Stellantis expanded production at its Kragujevac plant. The increase was driven by the Fiat Grande Panda, including electric and hybrid versions, following the continued ramp-up at the renovated factory. Automotive manufacturing has regained importance in Serbia’s industrial sector after several years of weaker output at the former Fiat operation.
Automotive sector strengthens trade
Serbia exported around €2.8 billion of cars in January-June, making vehicles one of the country’s largest export categories.
Kragujevac production started 2026 at roughly 200 vehicles per day and subsequently increased as additional shifts and hybrid production were introduced. The expansion has supported Serbia’s external trade while overall industrial activity remained weak. Merchandise exports rose 8.8% to €23.7 billion in January-August, while imports increased 4.6% to €28.8 billion. The trade deficit narrowed 11.3% to €5.1 billion, while industrial production grew only 0.1% in the first eight months.
Local sourcing remains important
The export value of completed vehicles does not equal Serbian value added because production relies heavily on imported components, electronics, batteries and other systems. The wider economic impact therefore depends on local sourcing and the participation of Serbian suppliers in the Stellantis production network. Serbia already has suppliers producing wiring systems, tyres, metal components, electronics and plastics. Projects involving SHAC, Xingyu, Minth and other automotive companies could further expand the supplier base serving Stellantis and other European manufacturers.
Kragujevac becomes more important to industrial output
The growing contribution of one major factory also increases Serbia’s exposure to changes in production schedules within the Stellantis manufacturing network. The company is operating in a European automotive market affected by changing demand, Chinese competition, tighter emissions requirements and pressure on vehicle prices, while production volumes can shift between plants according to demand, costs and capacity utilisation.
For Serbia, the continued expansion at Kragujevac increases the importance of developing suppliers capable of serving multiple manufacturers and increasing domestic industrial value added. The 51.1% rise in car exports has already made the automotive sector a significant contributor to Serbia’s export performance, with around €2.8 billion in vehicle exports recorded during the first six months of 2026.
