Albania has the potential to become an attractive destination for companies producing automotive parts.

According to an assessment by the World Bank, the auto parts industry in the country is still in its early stages, and the availability of skilled workforce creates an attraction for large automobile companies.

Based on their report, the market in Albania has attractive potentials for the production of processed parts.

Semi-processed parts, ready to be assembled, are precisely what large European companies are seeking.

The COVID-19 pandemic in 2020 brought about a massive crisis in the automotive market, which experienced a drastic slowdown due to transportation and supply chain disruptions.

As a result of this crisis, European companies have been prompted to explore closer alternatives for sourcing, in order to mitigate the risk of similar crises.

“Albania’s advantageous geographical position, along with its low labor costs, make it a valuable investment opportunity. In particular, the sector of electric vehicle production, as a growing market, presents a great opportunity for Albania. With the increasing demand for electric cars in the market, Albania, as a major copper producer, can become a production center for copper wires and other components for electric motors, as well as electronic devices on the dashboard,” states the World Bank report on Albania.

However, the market requires specific workforce qualifications, development of industrial structures, and incentive schemes for the labor force.