Experts are optimistic about the potential start of serial production for the electric “Fiat Grande Panda” at the Stellantis factory in Kragujevac, Serbia, expected in the second half of January 2025. If realized, this production could mark an important milestone for the Serbian economy, offering a valuable “New Year’s gift.” However, despite earlier announcements for production to begin in October and November 2024, those deadlines were missed, leaving some caution surrounding the new timeline.
President Aleksandar Vučić confirmed that the start of electric car production in Kragujevac is set for the third week of January 2025, stressing that the project would “drastically contribute” to Serbia’s GDP growth. Vučić further projected that producing more than 100,000 vehicles at the factory could result in a GDP growth rate of 4.2–4.3 percent for Serbia.
Uncertainty surrounds the timeline
While Vučić’s statement has raised expectations, Stellantis, the French-Italian owner of the Kragujevac factory, has not publicly confirmed the exact start date. Earlier speculations hinted at a 2024 launch, which did not materialize, causing skepticism about whether the new timeline will hold.
Ljubodrag Savić, Professor of Economics at the University of Belgrade, acknowledged that the announcement is a positive development for Serbia’s economy but cautioned that the success of the project is ultimately in the hands of Stellantis. “The start of production has been postponed several times, and while I hope this time it happens, given the challenges in Europe’s automotive industry, especially in Germany, I am cautious,” Savić remarked.
Obstacles to mass production
Savić also pointed out that while producing more than 100,000 electric vehicles could indeed contribute significantly to Serbia’s GDP, several external factors might hinder the project. These include declining demand for electric vehicles, especially in Europe, where German automotive giants are scaling back production and even considering layoffs. Additionally, the looming threat of tariffs on European imports, particularly from the U.S., and ongoing global trade tensions between Washington and Beijing further complicate the outlook for electric car production.
Savić highlighted that such a global environment is not ideal for scaling up electric car production, questioning whether there is enough market interest to sustain large-scale production. He emphasized that despite the potential benefits for Serbia, the realities of the global automotive industry could pose significant hurdles.
Serbia’s economic hopes
Economist Milan R. Kovačević reinforced that the timeline and scale of production in Kragujevac will depend entirely on Stellantis’ strategic decisions, which will be guided by market conditions. Kovačević also noted that the current market climate does not favor aggressive expansion in electric vehicle production. However, if the production begins in Kragujevac and reaches substantial volumes, it could positively impact Serbia’s economy, contributing to business growth and job creation.
Kovačević also questioned President Vučić’s optimistic projections regarding the potential impact on GDP growth, calling the assessment “extremely arbitrary.” However, he acknowledged that successful production would undoubtedly benefit the country.
The Fiat Grande Panda model
The electric Fiat Grande Panda was unveiled in Serbia on July 22, 2024, following its presentation in Turin, Italy, earlier that month. While Serbia eagerly anticipates the start of production, the automotive industry’s uncertain future and external challenges remain key factors influencing the realization of this ambitious project.
