Automotive groups turn to emerging Europe

Region is increasing its share of production, notes UniCredit.

Central and eastern Europe's automotive sector is enjoying a positive outlook thanks to many manufacturers expanding their capacity in the region.

A research note from analysts at UniCredit points to the news that Fiat has announced an increase in its operations in Serbia. Mercedes has done likewise in Hungary, while VW is expanding in Slovakia and Renault and Toyota are upping investment in Turkey.

Indeed, the note adds that despite a 12% drop in the region's production of vehicles last year, it increased its total share of European production to 24% from 22.4% in 2008.