The Chinese company Jiangling Group Electric Vehicle (JMEV) has confirmed its plans to build an electric vehicle factory in Sremska Mitrovica, Serbia. The long-term goal is to export these vehicles to the European Union without tariffs, the company told Radio Free Europe.
The exact investment amount will be decided within the next two months, depending on whether the factory will produce 3,000 or 5,000 vehicles annually, according to Brankica Zjalić, project leader for JMEV Serbia. Zjalić explained that the company chose Serbia due to the favorable economic relations with both China and the EU.
In October 2024, the EU imposed high tariffs, up to 35%, on electric vehicles produced in China for a five-year period, aiming to protect European manufacturers from what they consider unfair competition due to Chinese government subsidies. However, Serbia, which has signed a Free Trade Agreement with China that came into effect in 2024, can export cars to the EU duty-free under specific conditions. This has raised concerns within the EU, given Serbia’s status as an EU candidate country, and its commitment to ending such bilateral agreements once it joins the Union.
According to JMEV Serbia, the factory construction in Sremska Mitrovica is set to begin in the summer, with operations expected to start in 2026. The factory will initially require at least 300 workers to produce 3,000 vehicles per year. Chinese engineers will train the Serbian workforce during the startup phase.
The company plans to hire only Serbian workers for the factory. The local government of Sremska Mitrovica has committed to providing essential infrastructure such as electricity and other utilities, though there has been no mention of additional subsidies.
The electric cars produced will be sold both in Serbia and the EU. Some vehicle parts will be produced locally in Serbia, while others will be imported from China.
JMEV’s long-term strategy is to expand its production and eventually find local partners to manufacture more parts in Serbia, reducing the need for imports from China. By doing so, the company aims to label the vehicles as “Made in Serbia,” allowing them to be exported to the EU duty-free.
The European Commission’s tariffs on Chinese electric vehicles vary based on the manufacturer. For example, Tesla vehicles made in China face tariffs of about 7.8%, while tariffs on vehicles from Chinese manufacturer SAIC can reach as high as 35.3%.
