Industry Trend Analysis - Autos Investment Round-Up: CV Investments Dominate Emerging Europe Landscape - JUNE 2017

BMI View: CV producers have been quicker to carry out new production projects in Emerging Europe in 2017. This is particularly the case in Russia, as they seek to benefit from a faster recovery in CV demand compared to passenger car demand. Bullishness regarding the prospects of a Russian vehicle market recovery is also clearly reflected in the investment decisions of Chinese investors and Daimler.

In BMI's regular round-up of production investments, we track the latest projects from the production side of the industry and analyse trends that we see developing on a regional basis. In doing so, we hope to build a picture of any potential hubs that may be developing, as well as company strategy in terms of production bases and export programmes.

In Q117, we have identified USD1.9bn worth of investment projects that were either announced or inaugurated in the Emerging Europe region, which marks an increase compared to the USD1.6bn of projects in Q416. However, we also stress that this Q117 figure likely understates the value of investments given information on investment funding size was only available for seven of the 20 projects identified over the quarter. Slovenia was by far the largest benefactor of this investment, receiving USD1.4bn, followed by Russia with USD264mn and Slovakia with USD198mn.

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