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D o i n g B u s i n e s s i n t h e C ze c h R e p u bl ic I I. C ze c h In du s tr y

CZECH AUTOMOTIVE INDUSTRY ALSO FARED VERY WELL IN 2015

Photo: ŠKODA a.s., ŠKODA AUTO a.s. archives

The manufacture of motor vehicles reached a record level, placing the Czech Republic among the world’s top countries in terms of the manufacturing output of cars and buses per capita. According to the Automotive Industry Association (AIA), its member firms achieved historically record values not only in the manufacture of motor vehicles, but also in their aggregate financial results. Their year-on-year growth was especially reflected in the 7 % growth of their revenues, and a more than 7 % growth of export, with the number of their employees increasing by more than 4 % year-on-year. In 2015, altogether 1.3 million cars rolled off the lines and average wages surpassed the CZK 33,000 limit. The automotive industry continues to be the country’s most important economic sector and, the same as the domestic economy as a whole, showed an exceptionally high growth in 2015. While the world output of motor vehicles increased by only 1.1 % (to 90.8 million cars), Czech domestic motor vehicle manufacture grew by 4.2 %, which means that last year more than 1,298,000 cars rolled off the production lines in the CR. Three manufacturers participated in the manufacture of cars in 2015: ŠKODA Auto with a share of 56.8 %, HMMC Nošovice with a little under 26.4 %, and TPCA Czech with more than 16.9 %. In 2015, another historical record was achieved in bus manufacture, of which more than 4,000, specifically 4,517, an all-time record, were made. Iveco Czech Republic increased its production by 13.4 % (82.5 % of the total manufacturing output) in comparison with the previous year and SOR Libchavy made 33.9 % more buses than in 2014 (16.4 % of the total output). The remaining domestic manufacturers’ share of total bus output was 1.0 %. TATRA Trucks in Kopřivnice made 850 vehicles last year, 3.5 % more than in 2014. AGADOS company made 21,668 O1 and O2 trailers, 9.5 % less than in 2014. The manufacture of this category of vehicles has been monitored since 1998 and last year’s output is the second best since that year. JAWA Moto manufactured 1,727 machines, 60.6 % more than in 2014.

In the export business, too, the situation was favourable. Export continued to grow, bringing in 85 % of the automotive industry’s total revenues. Czech export as a whole increased by 7.1 %, with AIA’s firms raising their export by 7.2 % (the member firms’ share of Czech export thus remained practically at the same level of 20.1 %). The destinations of their export were mainly the European markets. Export to European markets accounted for 84.3 % of total export in comparison with 83.0 % in 2014. AIA firms also showed a favourable development in the volume of their revenues, which last year rose by 7.0 % to a record CZK 912 billion, so that the share of AIA firms increased from 21.1 % to 22.0 % of the industry’s total revenues.

MANUFACTURE OR ROAD VEHICLES IN THE CZECH REPUBLIC IN 2015/2014 Vehicle category

Production Jan. 2015

Dec. 2014

increase/decrease 2015/2014

1,298,236

1,246,506

4.15 %

850

821

3.53 %

Buses (M2+M3)

4,517

3,893

16.03 %

Motorcycles (L)

1,727

1,075

60.65 %

1,305,330

1,252,295

4.24 %

Trailers and semitrailers (03+04

1,790

1,633

9.61 %

Trailers and semitrailers (O1+02)

21,668

23,949

-9.52 %

TOTAL TRAILERS AND SEMITRAILERS:

23,458

25,582

-8.30 %

1,328,788

1,277,877

3.98 %

Cars + small utility vans (M1+N1) Lorries, tractors, undercarriages (N2+N3)

TOTAL MOTOR VEHICLES:

TOTAL ROAD VEHICLES:

2017

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Doing Business in the Czech Republic 2017  

Doing Business in the Czech Republic 2017  

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