Passenger car production in the Czech Republic increased by 31.5% YoY to 353,770 vehicles in the first quarter of this year. The Automotive Industry Association (SAP) confirmed that the production figures were approaching pre-crisis levels in 2019. Škoda Auto, the largest car manufacturer, increased production by 42.4% to 231,652 vehicles, while Hyundai in Nošovice produced 88,300 vehicles, up 18.8% YoY, and Toyota in Kolín produced 33,818 passenger cars, a 5.2% increase YoY. Of the total production, 11.7% of the vehicles were electric cars. The domestic market accounted for 24,950 vehicles, an increase of 10.2% YoY, and 328,820 cars were exported, a YoY increase of 33.4%.

While the situation in the supply chain is still not easy, the automotive industry association sees a gradual return to a balanced state. The association’s president, Martin Jahn, emphasizes that it is essential to prevent counterproductive regulatory interventions in the market, such as the current form of adopting the Euro 7 standard.

In contrast to the passenger car segment, the production of buses, motorcycles, and trailers decreased YoY in the first quarter. The production of buses decreased by 11.6% YoY, with a total of 1,101 buses produced. Of this, only 57 buses were intended for the domestic market, while the remaining 1,099 buses were exported. The only truck manufacturer among the association members, Tatra Trucks, produced 361 vehicles, an increase of 59 from the same period last year. Jawa in Týnec produced 183 motorcycles, 495 less than last year, while the production of trailers decreased by 18.6% YoY, with a total of 4,607 trailers of all sizes produced.

The Czech Republic is one of the leading producers of cars in Europe and is home to major international car manufacturers. The sector contributes significantly to the country’s GDP and employment, and the production figures indicate a positive trend for the country’s economy. However, the current challenges in the global supply chain and the potential regulatory interventions pose a threat to the industry’s growth.

Article by Prague Forum