Automotive industry in Serbia
|Economy of Serbia|
Serbia's automotive industry is one of the most important industrial sectors and makes about 15% of industrial output of the country and 18% of all exports (expected to reach $2 billion in 2013).
The Serbian automotive industry has its roots at very beginning of 20th century, when, in 1904, the industrial military complex Zastava creates a section dedicated to automobile repair and manufacture of certain parts. In 1939, Zastava begins assembling Chevrolet trucks. Production came to end with the start of the Second World War. Until 1941, the factory in Kragujevac produced 400 Chevrolet military trucks and the automotive section of Zastava industrial complex employed 12.000 workers.
In 1953, at the centenary of the company, Zastava signed a contract with Italian manufacturer FIAT to start the production several models under licence, including trucks, passenger cars, tractors and heavy-duty vehicles. In 1955 starts the production of what became the most popular model, the Zastava 750, which counted a total of 923.487 units produced. In 1965 Zastava starts exporting abroad. United States imported over 140.000 Zastava vehicles. In 1989 Zastava produced a record 230.570 units. All in all, Zastava produced over 4 million vehicles between 1953 and 2001, and exported to 74 countries, making Kragujevac the center of the automotive industry of Serbia and entire Yugoslavia. However, the facilities of the Zastava industrial complex were heavily damaged during the NATO bombing of FR Yugoslavia in 1999.
Zastava's suppliers manufactured under strict, high-quality production standards that enabled them to work with other western car manufacturers such as Mercedes, Ford, Peugeot Citroën-PSA Renault, and Opel.
Today, the automotive industry is one of the most prominent sectors in Serbia, accounting for almost 10% of the entire FDI stock in Serbia since 2000. 27 international investors have invested almost €1.5 billion in the sector, creating more than 19,000 jobs. The Serbian automotive industry supplies almost all major European and some Asian car manufacturers.
The manufacturing of vehicle chassis system parts, especially tires and suspension parts is the most prominent activity in the industry. Electrical system components are another dominant product group with car batteries and wiring installations as the most important products. Also, the production of engine components, mostly cast, is very significant, along with forged and machined parts like camshafts, brake discs, valves and flywheels.
Bus industries Kragujevac (BIK), in collaboration with Belorussian truck and bus manufacturer MAZ, began production by the late 2000s of gas-powered buses named BIK-203 which are based on the platform of the MAZ-203 model. These buses have been delivered to several Serbian towns to be in use in public transportation companies.
In 1952 Fabrika automobila Priboj (FAP) was founded and a year later the first trucks were produced based on a licence from Saurer. First domestically designed vehicles where introduced in serial production by 1965. In 1970 a production, technical and financial cooperation contract was signed by FAP with Daimler-Benz. In 1978 FAP began its collaboration with the Military Technical Institute Belgrade and started developing and producing special military vehicles. Since the 2010-s, FAP has military oriented and heavily limited production.
In 2008, FIAT entered a joint venture (JV) with the Republic of Serbia, creating what would become known as FCA Srbija. The JV extensively renovated and remodeled the former headquarters facility and assembly plant of Zastava Automobiles, and now manufactures the Fiat 500L, with an annual capacity of 85,000 cars (as of 2016).
Ikarbus is a bus manufacturer based in Belgrade. The company was first founded in 1923 as an aircraft manufacturer. After World War II the company was nationalised and two other Serbian aircraft manufacturers, Rogožarski and Zmaj aircraft, were merged into Ikarus. However, during the 1950s most of the personal and infrastructure of the aircraft factory were relocated to SOKO, and since then Ikarus has focused completely on bus production, first under licence, originally with Sauer and MAN designs, and later with the company's own designs. In 1992 the company was privatized, but due to a name dispute with Hungarian bus manufacturer Ikarus Bus, it changed name to Ikarbus.
Part of Zastava conglomerate company in Kragujevac, TERVO was formed on 1 September 2017 with all fixed and current assets of Zastava Trucks including most of its former employees. Produces terrain vehicles for military and civilian use and armored cabins and parts for military vehicles.
IDA-Opel was a car manufacturer based in Kikinda which produced Opel models under license between 1977 and 1992. It produced 38.700 vehicles. The production was ended due to the start of the Yugoslav Wars and the imposition of UN economic sanctions to FR Yugoslavia.
IMK 14. oktobar Kruševac
IMK 14. oktobar Kruševac was a company specialized in the production of heavy machinery and equipment. With its headquarters in Kruševac, it maintained production facilities in Varvarin, Brus and Ražanj. The company was established and in 1923 and declared bankruptcy in January 2016.
Industry of Machinery and Tractors (IMT) has produced tractors and agricultural machinery since the 1950s. It went into bankruptcy procedure in 2016. In April 2018, IMT was sold to TAFE. Production is reactivated in Jarkovac, as the Belgrade factory was excluded from sale.
Neobus was a bus manufacturer based in Novi Sad. Founded in 1952 as Autokaroserija, they cooperated closely with Slovenian manufacturer TAM. In 1992, with the independence of Slovenia, the cooperation ended and Autokaroserija became an independent bus manufacturer and changed its name to Neobus. In 2012 the Neobus went into bankruptcy.
Group Zastava Vehicles with its main company Zatava Automobiles, is a Serbian car manufacturer founded in Kragujevac, SFR Yugoslavia in 1953 as a successor to a Yugoslavian truck manufacturer. After decades of manufacturing numerous passenger and commercial vehicles under licence from FIAT, in the 1980s Zastava started producing its own models, such as Yugo and Zastava Florida designed by Giorgetto Giugiaro. The Zastava brand ended production in 2008, and in 2017, the company declared bankruptcy.
In 2008, Zastava's headquarters and assembly facilities were extensively renovated and modernized when they were assumed in a joint venture with the Republic of Serbia and Fiat, eventually becoming FCA Srbija.
The first vehicles to be built at Zastava were 400 Chevrolet trucks, which were built under license between 1939 and 1941 for the Royal Yugoslav Army. Then in 1953, 162 off-road vehicles with the trademark Willys were produced. But the marking point was when Zastava and FIAT signed an agreement in 1955 for building cars and trucks under license, beginning with the production of Fiat Campagnola AR-51 trucks and off-road vehicles, followed by Fiat 1100TF vans. In the 1980s Iveco models were produced.
In September 2017, the Government of Serbia established Zastava TERVO, which took over Zastava Trucks production facilities.
- History at Zastava official website (in Serbian)
- Gas-powered bus from Kragujevac at ekapija.rs, 20-4-2009
- MAZ-BIK 203 at Vulović Transport official website
- "Fiat Investing $1b into Zastava". Macedoniaonline.eu. Retrieved 2008-11-29.
- "Fiat proizveo 85.000 automobila u Kragujevcu u 2016. - Isti kapaciteti očekuju se i 2017. godine". ekapija.com (in Serbian). Beta. 15 December 2016. Retrieved 8 February 2018.
- "Odluka o osnivanju Društva s ograničenom odgovornošću za proizvodnju terenskih vozila „Zastava TERVO" Kragujevac". www.pravno-informacioni-sistem.rs. Retrieved 9 January 2018.