Development of Slovenian high-tech companies in cooperation with the Chinese electric vehicle industry

Conference during the Days of Automotive Industry Suppliers. | Author Živa Ogrin

The event, held by the Ministry of the Economy, Tourism and Sport, SPIRIT Slovenia, ACS and the Chamber of Commerce and Industry of Slovenia (GZS), was aimed at mutual acquaintance and networking. We presented the Slovenian business environment and the organisation of automotive suppliers to the representatives of Chinese companies. The Slovenian companies first gave brief individual presentations, and in the afternoon, they introduced themselves further in bilateral meetings.

Minister Han said, "The automotive industry is one of the pillars of the Slovenian economy. It contributes significantly to our gross domestic product, promotes innovation and development, and supports thousands of jobs. However, the global automotive industry is at a historic turning point in the transition to a carbon-free society. But these challenges bring not only risks but also many business opportunities. The Ministry of the Economy, Tourism and Sport is aware of this and is fully committed to keeping the industry in Slovenia."

The European automotive industry is currently facing a number of pressures. The Draghi Competitiveness Report reveals that the share of EU-produced vehicles in the global market declined from 31% (18 million vehicles) to 15% (13 million vehicles) between 2000 and 2022, while the share of vehicles produced in China increased from 4% (2 million vehicles) to 32% (27 million vehicles). During this period, global vehicle production also increased significantly, from 58 million vehicles produced in 2000 to 85 million vehicles produced in 2022.

In response to this situation, it is therefore important for Slovenian suppliers to also expand their customer network beyond the EU, in addition to their established customers for their parts. Based on activities carried out so far, Slovenia has been recognised as an interesting potential partner in China. Apart from its excellent location for logistics and trade between Europe and Asia, Slovenia represents an excellent opportunity for investment in production capacity within the EU. This is particularly true due to its highly educated workforce, its excellent ecosystem of high-tech companies linked to research institutions and its excellent location in the centre of Europe.

"Today's event is not only an opportunity to showcase our achievements and strengths, but also to build bridges between our two countries," said Minister Han. "The global automotive industry in particular is interconnected and through further cooperation we can create synergies that will benefit all parties involved. Our aim is to promote partnerships that will combine Slovenia's excellent technical know-how and advanced manufacturing capabilities with the innovative technologies of our international partners. This will not only improve our manufacturing capabilities, but also create a vibrant ecosystem for research and innovation."

The main message of the conference was that Slovenian manufacturers are not only following but also co-shaping the latest trends in the rapidly evolving automotive industry, both in conventional and electric vehicles.

Rok Capl, Director of SPIRIT Slovenia, stressed that Slovenia is renowned in the automotive industry for its exceptional innovation potential and the high quality and reliability of products, which ranks it among the top destinations for the development of advanced automotive technologies: "For many years SPIRIT Slovenia has been opening doors into international supply networks for Slovenian companies. China presents an important opportunity for Slovenian high-tech companies, which is why this year the agency has been stepping up its efforts in this market. In September, we presented Slovenia in a great light at the Chinese investment fair CIFIT in Xiamen. For November, we are planning a joint appearance of Slovenian companies at the China International Import Expo (CIIE) and a ministerial delegation to China during the expo."

Tanja Mohorič, Director of the Automotive Cluster of Slovenia (ACS), said that the Slovenian automotive industry builds its competitive advantages upon the strong tradition of its electrical and metal industry: "Because the companies are relatively small compared to big international corporations, the industry is also very flexible and resilient. Many of these companies are the "niche winners", as they hold important or even leading positions in the European and also global markets with regard to the development of specific technologies. Nevertheless, we must continue to improve our competitive position in the coming years with the aim of further penetrating foreign markets and establishing our companies along the fast-growing new actors in the automotive industry. In this way, the companies will also strengthen the important role of this innovative and development-oriented industry in Slovenia."

One of the Chinese ATTC producers commented on the event: "ATTC is the largest private type-approval company in the Chinese automotive industry. Our focus is on providing type-approval and engineering consulting services for almost all original equipment manufacturers and car suppliers in China. We are committed to establishing a long-term and in-depth cooperation with the Government, companies and laboratories in Slovenia for the type approval of vehicles and their components in the EU. Our endeavours will support the introduction of a large number of Chinese products for new energy vehicles, original equipment manufacturers and intelligent driving suppliers to Slovenia and promote the growth of automotive industry. Ultimately, this will create a transparent, legal and localised result, which will benefit all parties concerned."

TAM Europe highlighted: "We are honoured to be able to participate in the Chinese and Slovenian Day of Automotive Industry Suppliers, and to celebrate the strong partnership between the two automotive superpowers. As one of the historical Slovenian automotive manufacturers, we successfully combined European engineering excellency and the dynamic and innovative Chinese investments. Our commitment to sustainable transport solutions and advanced technologies for vehicles makes TAM Europe a bridge connecting global markets and driving the future of the automotive industry. We are looking forward to further cooperation and contribution to the growth and success of the automotive sector in Slovenia and China."

As part of the event, Chinese companies will visit several production facilities of Slovenian automotive parts manufacturers around Slovenia. They will also visit the Port of Koper, which will demonstrate its excellent transhipment capabilities for motor vehicles transported between the EU and China. The location of the Port allows for the shortest route from Chinese ports to Central Europe by sea.

About Slovenian automotive industry

The Slovenian automotive industry comprises approximately 400 companies, which generate 10% of the Slovenian GDP and 25% of the country's export and provide roughly 40,000 jobs. The large automotive companies export more than 90% of their production to global markets. In addition, more than 25% of all innovations winning an award from the Chamber of Commerce and Industry of Slovenia come from the automotive industry.

Cooperation between Slovenia and China

Trade between Slovenia and China is growing rapidly. In 2024, it reached almost EUR 8 billion. Imports from the People's Republic of China predominate in the trade structure, the majority of which are electronic devices and active ingredients for the European pharmaceutical industry. There are many Slovenian companies already operating in China. According to Bank of Slovenia, the foreign investments of Slovenian companies amounted to EUR 116.7 million.