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Opportunites / Best Prospects for U.S. Exports
I - 34 - I
Croatian market for new vehicles is not saturated and it is growing year over year, presenting a positive outlook for the future. In 2019, a total of 73,707 new vehicles were sold in Croatia, a 4.7% growth compared to 2018. This represents 15 new vehicles per 1,000 inhabitants, well under the EU average of 30 vehicles. In 2019, Croatia counted a total of 451 registered vehicles per 1,000 inhabitants and the average vehicle age was 12 years. German Volkswagen (VW) is the leading car brand. A total of 297 road fatalities in 2019 put Croatia above the EU average and make the road security as one of the priorities for the government.
In 2020, 8,080 hybrid and 1,343 electrical vehicles were sold, compared to 5,547 hybrid and 452 electric vehicles in 2019. According to Business Monitor International, this segment is expected to grow and more than quadruple in size until 2029. Government subsidies up to 40% of the purchase cost of a new electrical vehicles are driving the market. According to July 2020 local media reports, the most recent round of $3.4 million in funding was exhausted within two minutes, with 546 applications received online for the co-financing of energy-efficient vehicles. The country’s charging infrastructure is also growing. In September 2020, state-owned electric utility company Hrvatska Elektroprivreda (HEP) installed its 200th EV charging station. Car sharing services and mobile platforms for transportation are increasingly popular in Croatia, starting the trend of the Mobility-as-a-Service.
COVID-19 pandemic has cut the new automobile demand in Croatia in 2020 for 43%. It is expected that control of the pandemic and later economic recovery will eventually boost the market. An increase in inbound tourism after the pandemic should also lead to a rise in demand for new vehicles from the hospitality and car rental sectors. Tourism is also boosting demand for smart mobility, to help better organize transportation for over 17 million foreign tourists who visited the country in 2019 (Croatia’s population is four million). EU funds are available for environmental protection and smart mobility projects in Croatia, giving additional support to cities and municipalities to implement smart solutions.
croatia
Current Market Trends and Demand
ACEA – European Automobile Manufacturers Association: http://www.acea.be/
CLEPA – European Association of Automotive Suppliers: http://clepa.eu/
European Commission – DG for Mobility & Transport: https://ec.europa.eu/transport/about-us_en
Strujni krug – Association of Electric Car Drivers in Croatia: https://www.strujnikrug.hr/
Resources
croatia
Market Entry
India
Indian sports, predominately conquered by the game of cricket, are moving towards a collaborative environment, resulting in the growth of viewership, participation and sports-related industries. India’s sustainable economic climate, rising disposable incomes and changing outlook towards fitness is fueling an increase in demand for sports-related goods and services. From brand building and infrastructure to niche entrepreneurial ventures, the Indian sports industry has opened a variety of new business opportunities for investors looking at the Indian market. Investment prospects in the sports industry are dispersed across the entire supply chain, ranging from manufacturing and retail of equipment to advertising, talent management and training.
The growth in the Indian sports market is reflected in the mushrooming of several sporting leagues in the last 5-6 years. League/Franchise owners of multiple sports are taking steps to facilitate extensive grassroots participation that in turn create pathways for young talent to consider sports as a career. Furthermore, the burgeoning fitness industry (with a Compound Annual Growth Rate of 25%) is widening community participation by way of marathons, running/cycling groups, private gyms, in-house fitness centers within offices/residences, artificial sport turfs on roof tops, etc. This continuing trend of private sector involvement is driving the sector growth, creating a direct and relatively easy market access channel for foreign companies in the product or service space.
The Khelo India Program, a large-scale talent scouting program, offers annual scholarships of USD $6600 for 8 years to 2500 talented players (picked up every year from the annual Khelo India Youth Games) to prepare for International Sporting Events. The program also includes development and modernization of sports Infra and building centers of sporting excellence (in public universities) across the country.
In August 2019, Prime Minister Narendra Modi launched the FIT India Movement, a new nationwide campaign, to encourage the country to inculcate physical activity and sports in their everyday lives to counter lifestyle diseases.
A National Sport Development Code is also being inculcated to bring in more transparency and accountability in the National and State Sport Federations. This indicates the industry is moving towards professionalism by incorporating good sport governance structure and practices.
Croatia is an EU member, with fully harmonized regulatory system. Exporters of vehicles, Original Equipment (OE) parts & components, as well as aftermarket products & accessories to the EU and its member states must undergo a thorough assessment of, and ensure compliance with, existing European Commission Directives, i.e. regulatory requirements regarding technical specifications, product safety, as well as environmental impact & requirements. In principle, type-approval granted for vehicles or vehicle parts in one EU member state should be accepted by all member states across the EU. The institution responsible for automotive registration in Croatia is the Center for Vehicles of Croatia.