Stara Zagora, an industrial hub in Bulgaria, is emerging as a key player in the country’s automotive revolution. Through strategic investments, forward-thinking governance, and robust infrastructure, the region is attracting both domestic and international companies, positioning itself as the heart of Bulgaria’s growing automotive sector.
Strategic Location and Connectivity
Stara Zagora’s central location is one of its greatest assets, offering unmatched connectivity to major economic centers both within Bulgaria and beyond. With access to four major European transport corridors, the region facilitates seamless logistics, a crucial element for the automotive industry where supply chain efficiency is key.
Rositsa Raykova, head of the investment department at the Stara Zagora municipality, emphasizes the importance of geography in the region’s success. “Being centrally located, with proximity to major airports and seaports, allows us to serve both European and global markets effectively, making it an attractive hub for automotive companies looking to expand their footprint,” she says.
Investment Appeal and Growing Industrial Base
A forthcoming report from PwC underscores Stara Zagora’s potential to attract more automotive investments, especially from tier one, two, and three suppliers due to its proximity to Original Equipment Manufacturers (OEMs) and key suppliers in Central and Western Europe. Global firms such as Akwel of France and Nedschroef of the Netherlands have already set up operations in the region, drawn by its strategic location, competitive costs, and skilled labor force.
Velizar Dimitrov, CTO of eDynamix, highlights the competitive advantages of Stara Zagora. “The cost of running an office in Stara Zagora is far more favorable compared to bigger cities like Sofia or Plovdiv,” he notes, adding that this affordability was a major factor in their decision to invest in the region.
World-Class Infrastructure
Beyond location, Stara Zagora has committed to developing world-class infrastructure to support the needs of the automotive industry. The region’s industrial zones, such as Zagore and Elenino, offer a stable electricity grid, comprehensive gas distribution, and advanced digital infrastructure. As electric vehicles (EVs) become more prominent, Stara Zagora is also expanding its network of EV charging stations and integrating smart grid technologies.
“Our infrastructure development is focused on supporting the transition to green technologies,” says Raykova. “This is crucial not only for our production but for attracting new players to the region.”
Proactive Governance and Incentives
Local governance has played a vital role in attracting investment to the region. Stara Zagora offers one of the most favorable business environments in Bulgaria, with low taxes, financial support for vocational training, and subsidies for investments. The municipality’s corporate tax rate is a flat 10 percent—among the lowest in Europe—making it an affordable and attractive destination for businesses.
The region’s proactive governance extends beyond tax incentives. The local government is committed to simplifying administrative procedures, making it easier for businesses to set up and operate in the region. Businesses are also actively involved in decision-making, ensuring their needs are met, according to PwC’s report.
Building a Skilled Workforce for the Future
Stara Zagora’s success in the automotive industry is driven not just by infrastructure and incentives but also by its skilled workforce. The region has invested heavily in education and training, particularly in areas related to EV technology and green industries. Local institutions, including Trakia University, have developed specialized programs to meet the demands of the automotive sector, ensuring that the workforce is prepared for the future.
“We have placed a strong emphasis on training in EV technology, ensuring that our workforce is prepared for the future,” says Raykova. Additionally, efforts to promote IT education and foreign language proficiency have positioned Stara Zagora’s workforce as highly adaptable and competitive in the global market.
Looking to the Future
As the global automotive industry shifts toward electric vehicles and sustainable technologies, Stara Zagora is well-positioned to become a leader in this revolution. With strong infrastructure, a skilled workforce, and proactive governance, the region is attracting attention from key global players.
A PwC report concludes that with continued investments in the EV value chain, further enhancements to public support systems, and ongoing workforce development, Stara Zagora can solidify its place as a top destination for automotive investment in Europe.
By focusing on sustainability, efficiency, and innovation, Stara Zagora is not just leading Bulgaria’s automotive revolution but setting an example for other regions to follow.
