Czech Republic - Automotive Parts and EquipmentCzech Republic - Automotive Parts
Overview
Unit: USD thousands
|
2015 |
2016 |
2017 |
2018 (Estimated) |
Total Local Production |
18,765,000 |
18,800,000 |
19,000,000 |
18,800,000 |
Total Exports |
14,451,992 |
15,623,648 |
16,000,000 |
16,000,000 |
Total Imports |
10,589,271 |
11,713,466 |
12,000,000 |
11,800,000 |
Imports from the US |
37,209 |
33,131 |
35,000 |
36,000 |
Total Market Size |
14,902,279 |
14,689,818 |
15,000,000 |
15,000,000 |
Exchange Rates |
24.203 |
25.045 |
20.884 |
20.158 |
Source: United States Department of Commerce, Bureau of the Census, Foreign Trade Division, TPIS Database: USHS EXPORTS, Revised Statistics for 1989-2015, unrevised for 2016-2017; Automotive Industry Association of the Czech Republic (AIA); Czech Statistical Office. Exchange rates: U.S. Treasury Department.
The automotive industry represents the backbone of the Czech national economy. In 2016, the Czech automotive market was the sixth largest in the EU and the fifteenth largest motor vehicle producer in the world. Nevertheless, the Czech automotive industry faces three major challenges:
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In May 2018, the Czech unemployment rate reached an unprecedented 2.3 percent. A lack of both qualified and unqualified workforce puts limits on local production capacity. Although companies invest in automation and import employees from abroad, a significant drop in automotive production is expected in 2018.
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Electromobility will change the current fossil fuel propulsion paradigm. All companies will need to consider major changes in production in the coming decades.
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Chinese production has become more competitive in European markets.
Based on preliminary 2017 figures from the Czech Automotive Industry Association, automotive production was roughly $45 billion in 2017, which was only a slight increase over the previous record year in 2016. Production of exported automotive parts and accessories was responsible for about 60 percent of total output. The remaining 40 percent represented production of new vehicles for export. In 2017, annual production of new passenger cars in the Czech Republic reached 1.307 million units, an increase of 4.5 percent. Preliminary numbers for the first quarter of 2018 indicate a decrease of about 2-3 percent in production of new passenger cars. More than 90 percent of Czech automotive companies are foreign owned. The three major car manufacturers are Skoda Auto/Volkswagen, PSA Peugeot Citroen/Toyota Motor Corporation, and Hyundai. More than half of the world’s 50 leading suppliers have had facilities in the country for a decade or longer.
Leading Sub-Sectors
Growing interest in alternative fuel vehicles (CNG, electric propulsion, and hybrids) is the primary factor boosting the demand for alternative fuel propulsion systems and related equipment.
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Automation for automotive parts manufacturers
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Electric car, motorbikes and parts
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Auto security equipment
Opportunities
Event: Escape6 Prague Car Festival
Dates: September 1-2, 2018
Venue: PVA Expo Prague, Czech Republic
Organizer: Agentura M-S-P, s.r.o.
Event: Czechbus Prague
Dates: November 20-22, 2018
Venue: Prague Exhibition Grounds
Organizer: Incheba Expo Prague, s.r.o.
Event: Motosalon Brno
Dates: March 7-10, 2019
Venue: Brno (TBD)
Organizer: BVV Trade Fairs Brno
Web Resources
Automotive Industry Association of the Czech Republic www.autosap.cz
U.S. Commercial Service: Zdenek.Svoboda@trade.gov