Industry Trend Analysis - Russian Recovery Driving Up Belarusian Autos Production - DEC 2017
BMI View : Duty free access to the Russian market, the presence of special economic zones and recovering local demand is mak ing Belarus an attractive destination for autos production in Eastern Europe .
Belarus is emerging as an attractive automotive production hub, primarily as a supplier to Russia and other eastern European markets. We forecast that Belarus' vehicle production will grow 8.5% in 2017 and will continue to average 10.4% over our 2017-2021 forecast period as the market attractiveness entices more automakers. The arrival of Geely-branded production in June 2017 complements earlier investments by PSA Group in the country in October 2014, and from General Motors Company in June 2013; the trend further reiterates the appeal of Belarus' vehicle production market (see ' Autos Investment Round-Up: Producers Preoccupied With Russian Recovery ' , October 6 2017 ). Belarus' attractiveness as an automotive production destination for automakers is down to the following four factors:
Recovering domestic vehicle sales market;
Domestic Market Growing But Not Enough Belarus - Passenger Vehicle Sales e/f=BMI estimate/forecast. Source:BMI, National Statistical Committee of the Republic of Belarus
This article is part of our Emerging Europe coverage. To access this article subscribe now or sign up for free trial