Serbia: Why Has One Chinese Automotive Supplier Invested Nearly €2 Billion Here?

Core Data

Metric Data Source

Minth’s total announced investment in Serbia Nearly €2 billion intellinews

Of which — Inđija EV components plant €870 million, 2,200 jobs Serbian Monitor

Leskovac + Ćuprija new plants €950 million, 2,800 jobs eKapija / Gasgoo

Existing employees in Loznica + Šabac 3,500 people Gasgoo

China–Serbia FTA 95% tariff elimination target China Customs

In-Depth Analysis

The China–Serbia FTA, effective July 2024, further reinforces this advantage: 90% of tariff lines will be gradually eliminated, with a final zero-tariff target of 95%, covering vehicles, PV modules, lithium batteries, and other key Chinese exports. This dual-FTA framework — facing both the EU and China — makes Serbia a unique “tariff arbitrage platform” globally.

Serbia’s corporate income tax rate is 15%, but qualifying companies can enjoy a ten-year tax holiday. Labor costs are far below EU averages — Linglong’s local workers receive approximately RMB 5,000 per month, roughly half the salary of assembly line workers in Hungary. Utility costs are also among the lowest in Central and Eastern Europe.

Serbia’s visa policy is remarkably flexible. Chinese citizens can enter visa-free for 30 days, then apply for a work permit after signing a contract with a local company. Three-year residency permits are available — known locally as “white cards.” This is an extremely rare arrangement across Europe, significantly lowering barriers for Chinese companies to send technical and managerial personnel.

Industry Insights Upgrade from “trade export” to “capacity export” : The vulnerabilities of a pure export model — unilateral tariffs, geopolitical risks, customer demand for supply chain localization — are becoming increasingly clear. Serbia’s dual-FTA system offers Chinese suppliers a unique combination of tariff-free EU market access and preferential treatment for Chinese-origin materials. A new investment coordinate system is emerging : Mexico is for the US. Thailand is for ASEAN. Hungary is for the EU. Serbia, however, is emerging as a “super hub” capable of reaching the EU, Eastern Europe, Turkey, and the Eurasian Economic Union simultaneously.

Serbia MinthGroup ChinaEV EuropeExpansion AutoSupplyChain