Milan Grujić, President of the German-Serbian Chamber of Commerce-AHK Serbia, highlights Serbia’s “resilient transformation” as a strategic hub for German industries, with over 80,000 people employed in German companies and exports in mobility skyrocketing 300% since 2015
German-Serbian economic relations have evolved into a high-impact, forward-looking partnership driven by resilient growth, industrial innovation, and a highly skilled workforce. With over 80,000 people employed in German companies in Serbia and bilateral trade surpassing €9.37 billion in 2023, Serbia has solidified its role as a key industrial and technological hub for Germany.
For Milan Grujić, President of AHK Serbia and Managing Director of ZF Serbia, the partnership is about more than just numbers—it’s about co-creation, adaptability, and Serbia’s strategic advantage in the European supply chain. From automotive and mobility solutions to digital transformation and green energy, German companies are shaping Serbia’s future—and Serbia is shaping theirs in return.
In this interview, Grujić discusses how Serbia has attracted top-tier German investments, why the country is seen as a production and innovation hub, and what lies ahead in the next era of German-Serbian business cooperation.
Over the past decade, German-Serbian business ties have deepened significantly. What key figures or milestones best illustrate this progress, and if you had to capture this evolution in a single word or phrase, what would it be—and why?
If I had to distil the evolution of German-Serbian business relations into a single phrase, it would be “Resilient Transformation.”
Over the past decade, we’ve not only expanded economic ties but fundamentally redefined how we collaborate. Trust, long-term partnership and shared vision have fueled this shift. The numbers reflect it: while global trade contracted in 2023, trade between Serbia and Germany grew by 11.1%, surpassing €9.37 billion.
One of the most striking transformations has been in mobility — in this sector, from 2015 to 2023, Serbia’s exports to Germany skyrocketed 300%. This isn’t just about volume; it’s about Serbia becoming a strategic player in the European supply chain, integrating its expertise into advanced industrial processes.
Beyond figures, over 80,000 people are now employed in German companies in Serbia, shaping the industries of tomorrow. The road ahead is clear: with digitalisation, green transition, and industrial modernisation, Serbia has the potential to solidify its position as a key economic partner to Germany. Our role is to ensure we make the most of these opportunities.
German Investment & Workforce Development in Serbia
Employment Impact: Over 80,000 people work in German companies in Serbia, making Germany one of the largest foreign employers in the country.
Education & Training: Companies like ZF and Siemens have launched dual education programs, bridging the gap between academia and industry needs.
Why It Matters: German firms aren’t just hiring—they’re developing Serbia’s next generation of engineers, technicians, and digital specialists.
Serbia’s Unique Position in the EU Supply Chain
Strategic Advantage: Serbia operates inside the EU’s economic framework while retaining flexibility outside full membership, allowing cost-competitive manufacturing with easy EU access.
Key Sectors Benefiting: Automotive, electronics, and industrial manufacturing leverage Serbia’s low production costs while maintaining EU market standards.
Future Outlook: As supply chains recalibrate post-pandemic, Serbia’s role as a regional production and logistics hub will only grow.
Which German companies have made the biggest impact in Serbia, and what stands out as the most remarkable success stories?
German companies in Serbia are not just investors; they are catalysts for change. They create ecosystems of knowledge, innovation and sustainable development, positioning Serbia as a key European industrial hub.
At ZF Serbia, where I serve as managing director, we’ve witnessed first-hand how a commitment to innovation and talent development transforms an industry. In just a few years, ZF Serbia has become a leading hub for e-mobility, contributing to Serbia’s integration into global supply chains and shaping the future of automotive technology.
Siemens has revolutionised railway mobility. Bosch has turned Serbia into a strategic hub for automotive electronics. Leoni has significantly contributed to employment, particularly in southern Serbia.
What’s particularly exciting is that these companies aren’t just producing—they’re innovating. They’re integrating Serbian engineers into global R&D projects, ensuring that our workforce doesn’t just follow industry trends but actively defines them. This is the true success story of German-Serbian cooperation: co-creation of the future.
What makes Serbia the next big destination for German investment, and how would you present this opportunity to potential investors?
Serbia is no longer just an emerging market—it is a strategic investment destination that bridges Europe’s industrial and technological shifts. What makes it so attractive? First, its location. Positioned at the crossroads of Europe, Serbia offers unparalleled access to key EU markets while maintaining cost advantages that make production and operations highly competitive. Logistics efficiency is only improving, with ongoing infrastructure projects reinforcing Serbia’s role as a central player in regional supply chains.
But beyond geography, what truly defines Serbia’s appeal is its people. The Serbian workforce is highly skilled, adaptable and eager to innovate. At ZF, we’ve seen firsthand how Serbia’s engineers and technical specialists integrate seamlessly into global R&D processes, not just following industry trends but actively shaping them. This ability to merge cost efficiency with high-value innovation is what sets Serbia apart.
Serbia isn’t just following global industry trends—it’s shaping them
At the same time, Serbia’s economic partnership with Germany is already well-established. Germany is Serbia’s largest trading partner, and despite global economic uncertainties, bilateral trade continues to grow at an impressive rate. This reflects Serbia’s commitment to fostering economic cooperation and continuously improving its investment framework.
While challenges exist, Serbia has proven its ability to adapt, making it a stable and attractive long-term destination for investment.
For German investors, Serbia represents more than just a market — it is a strategic platform for growth in an era of economic realignment. Those who recognise this early will not only benefit from Serbia’s competitive advantages but will also play a defining role in shaping the country’s next phase of industrial and technological transformation.
Serbia has positioned itself as an industrial and production hub for many German companies. What’s the ‘secret ingredient’ that keeps attracting investors?
If there’s one defining factor, it’s Serbia’s ability to adapt and innovate in real-time.
Serbia offers more than a workforce — it offers problem solvers, innovators and partners who move at the speed of change. German companies in Serbia aren’t just outsourcing — they’re co-creating new solutions, whether in mobility, industrial automation or digital transformation.
The German Serbian Trade Surge
Fact: In 2023, Germany-Serbia trade grew by 11.1%, exceeding €9.37 billion, even as global trade slowed.
Why It Matters: This consistent growth trend underscores Serbia’s rising role as a production and export hub for Germany.
What’s Next: With ongoing investments in mobility, automation, and green energy, trade volume is expected to surpass €10 billion in 2025.
Serbia’s Role in Germany’s Automotive Future
Key Growth Area: Since 2015, Serbia’s mobility exports to Germany have surged 300%.
Major Players: ZF, Bosch, and Leoni lead Serbia’s e-mobility and automotive electronics expansion, making Serbia a key link in the EU’s auto supply chain.
Looking Ahead: As electric vehicle (EV) production accelerates, Serbia’s automotive R&D and smart production capabilities will play an even bigger role in the industry.
What also sets Serbia apart is its business agility. Unlike larger, slower-moving markets, Serbia makes decisions quickly and executes efficiently. This is a crucial advantage in an era where geopolitical and economic uncertainties demand rapid adaptation.
Serbia is outside the EU but deeply integrated with the European economy. How does this positioning help or challenge German businesses?
Serbia is in a unique position — it operates within the EU’s economic framework while retaining strategic flexibility. For German businesses, this means seamless access to European supply chains and regulatory frameworks, competitive cost structures for production and operations and agility in adapting to global market shifts.
This positioning allows companies to leverage Serbia as a hub for production, innovation and regional distribution while avoiding some of the bureaucratic complexities that come with EU membership. It’s a strategic advantage that is becoming even more relevant as supply chains recalibrate in response to global disruptions.
German businesses often focus on workforce development and vocational training. What are some key statistics that highlight their impact in Serbia?
German companies in Serbia are not just hiring — they are shaping the future workforce.
ZF Serbia has pioneered dual education programs, working with universities and technical schools to align training with real-world industry needs.
Over 80,000 people work in German companies in Serbia, contributing to one of Europe’s fastest-growing industrial ecosystems
Also, German firms have been instrumental in bridging the skills gap, particularly in mobility, automation and IT.
Even amidst global labour market challenges, German companies in Serbia remain committed to long-term workforce development.
The result? A pipeline of highly skilled, globally competitive talent that strengthens not just individual companies but the entire economic ecosystem.
What’s one thing German investors often misunderstand about Serbia before entering the market—and what’s one aspect they always end up appreciating the most?
I would say that a crucial misconception and a common concern among German investors is that Serbia’s business environment is overly complex due to bureaucracy. While administrative challenges exist, the reality is that Serbia has undergone significant reforms in recent years, simplifying processes and improving the investment climate.
On the other hand, what they appreciate most, and what is the biggest revelation for investors, is Serbia’s talent pool. They quickly recognise that Serbian professionals don’t just execute tasks but contribute strategically. The level of expertise, problem-solving ability and innovation mindset is what truly sets Serbia apart.
Ultimately, success in Serbia isn’t just about finding cost-effective operations — it’s about discovering a dynamic, forward-thinking business environment that fosters long-term value creation.
Finally, what I would like to notice and what I find important is the fact that the German-Serbian economic partnership is at an inflection point. The next decade for sure will be shaped by digitalisation, green transition and supply chain reinvention.
For companies willing to embrace change, invest in innovation and build long-term partnerships, Serbia represents an opportunity that extends far beyond the numbers.
The real question isn’t whether Serbia is ready for the future — the question is: Are we ready to seize the opportunities that the future offers us?
