This dynamic, however, can’t go on forever, because of the market’s possible saturation, according to a Coface study, cited by local Agerpres.
Last year, countries in Eastern Europe produced 3.6 million cars, namely 2% of EU’s total production. Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia have 33 car factories, and most of them were built with direct foreign investments.
The region has two strong local brands, namely Skoda and Dacia, according to the Coface study. The number of cars produced in the CEE region doubled in the last ten years. In Slovakia, Romania and the Czech Republic, the auto production tripled or even increased fourfold.
The car factories in the region are very dependent on the external demand. (source: romania-insider.com)
