Industry Trend Analysis - High Risks And Low Rewards Hampering Production Attractiveness - JUNE 2017

BMI View : Bulgaria ' s small labour market, un developed broader manufacturing industry, weak autos - related policy and uncertain long-term economic outlook will hamper the country ' s ability to attract fresh investment into domestic car production after sole car manufacturer Litex Motors filed for bankruptcy.

In March 2017 it was reported that Litex Motors, Bulgaria's sole car manufacturer, had filed for bankruptcy with Sofia City Court citing 'over-indebtedness', according to the filing published on the website of the county court. The Bulgarian company assembled cars from kits provided by China's Great Wall Motors in the northern city of Lovech, where it began operations in 2011, but suspended work in January 2016.

According to a report by Litex Motors, the carmaker sold 851 cars domestically in 2015, bringing in BGN57mn (USD31.2mn) for a net loss of BGN5.43mn (USD3.0mn). The suspension of production operations and Litex Motors' decision to file for bankruptcy means we are revising our passenger car production outlook for Bulgaria down to 0 units for 2016 and over the remainder of our forecast period to 2021.

Litex Motors Bankruptcy Marks End Of Production
Bulgaria - Passenger Car Production, Units
e/f = BMI estimate/forecast. Source: National sources, BMI

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