Frost & Sullivan: CEE Region Becoming Increasingly Attractive for Automotive OEMs

LONDON, September 9, 2010 - If current trends persist, more cars will be made, sold and exported by
CEE countries the coming years. A still avid demand for light vehicles,
better export opportunities, relatively low labour costs, a well-developed
logistics infrastructure and the presence of leading local automotive
suppliers make the CEE region attractive for investors. For its part, Russia
can expect dynamic growth in the light vehicle sector if the economic
situation improves. Ultimately, however, both in CEE and in Russia, market
growth will hinge largely on the recovery of the car loan market.

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New analysis from Frost & Sullivan (www.automotive.frost.com),
Russian and CEE Automotive Industry Outlook, finds that light vehicle sales
in CEE reached 1.5 million passenger cars and light commercial vehicles in
2009. This is expected to further increase to 2.5 million units by 2015. The
Russian light vehicle market reached 1.5 million units in 2009, and will
likely reach 3.5 million by 2015. The regions covered in this research
service are Czech Republic, Bulgaria, Slovakia, Romania, Slovenia, Poland,
Hungary, Turkey, Russia and Ukraine.

"CEE countries, especially Turkey, Poland and the Czech Republic, should
see a significant rise in new car sales in the mid- to long-term as personal
incomes increase and auto loans become more readily available," says Frost &
Sullivan Research Analyst Vitaly Belskiy. "Although still mired by the
economic downturn, the Russian market is nevertheless attractive in terms of
its sales potential."

Competition will also step up as countries like Bulgaria and Romania
enter the arena, offering improving business environments and lower labour
costs than Poland, Slovakia or the Czech Republic. The new entrants must
however, improve their supplier and logistics networks to be competitive in
the long term.

Dynamic development of each country's key competencies in strategic
automotive segments like R&D and telematics combined with sustainable
government support will enhance CEE countries' position as European
automotive production hubs.

"Developing comparative strategies based on innovation and focusing on
the production of high value-added products becomes crucial for maintaining a
long-term competitive position," concludes Belskiy.

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at monika.kwiecinska@frost.com,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Russian and CEE Automotive Industry Outlook is part of the Automotive &
Transportation Growth Partnership Services programme, which also includes
research in the following markets: Russian Logistics Market. All research
services included in subscriptions provide detailed market opportunities and
industry trends that have been evaluated following extensive interviews with
market participants.

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                  Russian and CEE Automotive Industry Outlook
                                   M5BA

    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

    www.frost.com

Monika Kwiecinska, Corporate Communications - Europe, P: +48-22-390-412