Bosnia and Herzegovina has a long tradition and widespread experience in the automotive industry. For decades, major brands have relied on the skilled workforce of BiH to assemble cars for Western markets. Before 1992, Volkswagen produced passenger and commercial vehicles at a plant near Sarajevo, while Kosmos - Banja Luka and Soko - Mostar produced buses.

 As a consequence of existing final vehicle assembly and automotive components production, the powerful and diversified supply chain and supporting infrastructure had been established including education system, research & development institutions and specialized and competent labour force with metalworking, automotive and electrical engineering skills

In the last past ten years, this industry has experienced dynamic development, and has become strongly export-oriented, exporting in average
90% of their production, in 30 countries all around world.

Today, BiH companies in automotive sector are producers of a wide spectrum of parts and components, such as: engines and gears and their parts, high-quality metal precision parts, drive shafts, brake parts and systems, clutches, steering parts and systems, pumps, filters, automotive electric parts (signals, relays, electronic switches), textile and leather products, plastic injection parts, aluminium wheels, car batteries, and various small parts such as springs, screws, hoses, and components of metal, rubber or plastic.

The main reasons why to choose Bosnia and Herzegovina as your destination for investing in automotive sector are as follows:

• Strategic location: Geographical proximity to automotive manufacturing base in Europe allows foreign investors low distribution costs and “just-in-time” production delivery

• Long and extensive tradition in auto-components supply and complementary metal processing sector

• Continuous growth of export, respectable clients

• Availability of research and development institutes (6 Faculties of Mechanics)

• Quality production – ISO and industry certificates

• Infrastructure in place and energy sources available