Chinese Xingyu investing EUR 77 million in new automotive lighting factory in Nis – State to provide EUR 8.2 million in incentives

The Chinese company Xingyu Automotive Lighting Systems plans a new investment of at least EUR 77 million in Nis, with state incentives of EUR 8.2 million. The project envisages the employment of at least 100 new workers by the end of 2030.

On June 10, 2026, the Ministry of Economy and this company signed an agreement on the allocation of state incentives for the implementation of the investment project to build a new production facility for the production of automotive lighting in Nis. The agreement stipulates that the company will invest at least EUR 77 million in the project.

The state has approved a total of EUR 8.2 million in incentives for the implementation of the investment, which, as stated, represents 10.65% of the justified costs of investing in tangible and intangible assets. At least 25% of the total investment obligation must be financed from the company’s own funds, i.e. from sources that do not contain state aid.

New factory and at least 100 new jobs

According to the contract, Xingyu committed to implementing the investment project by the end of 2030 and hiring at least 100 new permanent and full-time employees. The company committed to allocate at least 2.904 million euros for their salaries in the two-year period after reaching full employment.

The company already had 242 employees at the time of the application, which means that with the implementation of the new investment, the number of employees associated with the project should reach at least 342. The contract also stipulates that the company must not reduce the number of employees below the contracted level, nor the value of the assets created through the project, during the five years after the completion of the investment project.

Direct investments and the achieved number of new employees must remain in the same location for at least five years after the completion of the investment.

State money to arrive in five installments

Incentives of 8.2 million euros will be paid in five tranches from 2027 to 2031. Each payment is conditional on Xingyu demonstrating that it has fulfilled its contractual obligations regarding investment and employment.

The first tranche, of EUR 1.9 million, is scheduled for 2027 after an investment of at least EUR 30.7 million and the employment of six new employees. A payment of EUR 1 million is scheduled for 2028, with additional investment and a total of 10 new employees.

The third tranche, worth EUR 2.2 million, is planned for 2029, after investments reach at least EUR 16.85 million in that phase and a total of 32 new employees are hired. A tranche of EUR 1.9 million is planned for 2030, with an investment of at least EUR 10.52 million and a total of 35 new employees. The last tranche, of EUR 1 million, should be paid in 2031 after investments of at least EUR 6.3 million and a total of 17 new employees are hired in that phase.

Xingyu already has production in Nis

Xingyu Automotive Lighting Systems d.o.o. Nis was founded in 2019, and the company is owned by the Chinese Changzhou Xingyu Automotive Lighting Systems Co. Ltd. The company manufactures lighting equipment for motor vehicles. The document states that the Chinese investor owns six automotive lighting production plants in China and one plant in Serbia.

In 2022, the Xingyu Group generated an estimated consolidated revenue of around EUR 1.057 billion and employed approximately 8,592 workers. Its main markets are Germany, Japan, the US and China.

The company has already been a beneficiary of state subsidies in Nis. Under a previous contract from 2020, it was granted a total of EUR 16.4 million, while the factory committed to investing around EUR 60 million and employing 1,000 workers by the end of 2025. The contract was then amended in 2024, reducing that figure to 550 employees who will have to be hired by 2026, and the state subsidy was also reduced to EUR 12.3 million.

The new contract from 2026 relates to a new investment project and a new production facility.

The company, among other things, has committed to providing practical training to high school students and internships to interested students, while the Ministry and competent authorities have the right to control the implementation of the investment, the number of employees and the cost of salaries.

The contract was signed in Belgrade on June 10, 2026, and enters into force on the date of signature by both parties.

I. Z.

Xingyu Automotive Lighting Systems d.o.o. Niš

Ministarstvo privrede Republike Srbije

Xingyu Automotive Lighting Systems

Ministry of Economy

state aid

state subsidies

motor vehicle lighting