The automotive sector in the Republic of Moldova has experienced a noticeable rise and strengthening over the past ten years, positioning itself as a leading domain in terms of value in Moldovan exports.
The exports from the Republic of Moldova of machinery, equipment, electrical devices, and vehicles have increased by more than 2.5 times in the last 10 years, from USD 279 million in exports in 2014 to USD 705 million in 2023. Also, in 2023, these exports accounted for 17.42% of the total value of merchandise exports, second only to the agri-food sector.
Source: BNS, NCM XVII.85, XVIII
A few years ago, Moldova's automotive industry was focused on the production of wiring and seat upholstery, which laid the foundation for the development of this sector. Today, thanks to the continued efforts of all manufacturers, Moldova has managed to significantly diversify its portfolio. Local manufacturers now also produce high-value-added components such as sensors, magnets, electronic systems, and software, thereby contributing to the sector's increased competitiveness and international recognition.
Manufacturers in the Republic of Moldova produce automotive components for renowned brands such as Mercedes, BMW, Audi, Volkswagen, Tesla, Porsche, Skoda, Renault, Nissan, Fiat, Jaguar, Land Rover, and others.
This production is carried out by a relatively small number of companies, most of which are foreign direct investments in the Republic of Moldova from countries like Germany, Japan, the Czech Republic, Italy, France, and the Netherlands. These companies operate primarily in the free economic zones in regions such as Ungheni, Bălți, Orhei, Strășeni, and Comrat, providing jobs for thousands of employees.
Although most manufacturing companies cannot publicly disclose specific details about the types of components delivered, their quantities, or the car models they are intended for, a study conducted by the Invest Moldova Agency, based on data collected directly from 4 of the top 10 manufacturers in the Republic of Moldova, shows that our country produces and exports automotive components for over 1.5 million unique cars (according to data presented and analyzed from 4 companies, confidentially, for the year 2023).
Considering that 93.546.599 (Source: The International Organization of Motor Vehicle Manufacturers (OICA)) vehicles were produced globally in 2023, Moldovan manufacturing companies contributed to the production of components for at least 1.6% of the vehicles produced worldwide in 2023.
While a few years ago, the main competitive advantage of the Republic of Moldova was cheap labor, today it is much more than that. Costs still play an important role, but the focus is now primarily on the quality of the products delivered, as well as on-time delivery to OEMs (Original Equipment Manufacturers, also known as final assemblers), meaning adherence to production and delivery deadlines, down to the minute.
Igor Cheptine, the manager of Magnetec, one of the companies located in Moldova that produces and exports high-value-added automotive components, states that "of the 4 countries where the company operates, the Republic of Moldova sets the benchmark in terms of delivering quality products with an absolute minimum of errors".
The quality of the final products and on-time delivery are extremely important indicators in this business segment, where a delay of even a minute can lead to significant penalties. In some cases, these can exceed EUR 100,000 per hour.
"Rapid technical solutions and excellent product quality are our most important competitive advantages. Others may also deliver the same services and products, but for us, quality and the delivery of individual solutions remain absolute priorities", says Alexandru Magnet, Director of Whetec.
To further support the sector’s rapid development, it is crucial to continue investing in technology, human capital, and infrastructure, ensuring that Moldova becomes even more competitive and a key player in the global automotive industry's value chain.