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Daily Newsletter

15 August 2023

Daily Newsletter

15 August 2023

FCA moves on Serbia EV build

Reportedly an electric C3

Graeme Roberts August 14 2023

Fiat Chrysler Automobiles (FCA) Serbia will likely start production of a new car model at its factory in Kragujevac in the third quarter of 2024, local media reported.

Preparatory works for production are progressing according to plan and new "personnel solutions" are already being considered, Radio Television Kragujevac (RTK) quoted the president of the independent trade union at the Fiat factory, Sasa Djordjevic, as saying last week, according to SeeNews.com.

An electric car model which, according to announcements, will be produced in Kragujevac, should come off the production line at the end of 2024, RTK said.

Earlier this year, local media reported that the electric version of Citroen’s C3 model will be produced in Serbia.

SeeNews noted that, in April 2022, Stellantis and Serbia signed a deal to jointly invest EUR190m (US$207.8m) to produce EVs in Kragujevac.

FCA owns 67% of the share capital of FCA Serbia and the government holds the remainder.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData estimates. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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