Sector Overview
The automotive sector is one of the driving forces of economic growth in the Czech Republic. The sector produced 10% of the country’s gross output in 2014, up from 7.2% in 2007. The automotive sector is the biggest sector in the Czech Republic in terms of gross output generated. It is followed by real estate activities (with 6% of gross output in 2014), by wholesale and retail trade (including repair of motor vehicles and motorcycles), with 5%, and by electricity, gas, steam and air conditioning supply (4%). Its importance is enhanced by the fact that the country has one of the leading positions in terms of vehicles production in both the world and the EU market. The number of passenger cars per 1000 inhabitants in the Czech Republic was 458 in 2013, compared with 494 for the EU, according to the data of the European Automobile Manufacturer's Association (ACEA).
Position in EU
The Czech Republic is the fifth largest automotive manufacturer in the EU27, following Germany, France, Spain and the United Kingdom. In 2015, it accounted for 7.2% of EU27 production (including cars, commercial vehicles, heavy trucks and buses), down by 0.1pps year-on-year, according to data published by OICA (the Paris-based International Organization of Motor Vehicle Manufacturers). The Czech Republic accounted for 36.4 % of the EU’s “new” (non-EU15) member states’ automotive production in 2015. The country is one of the top five automotive manufacturing countries in the EU due to its passenger cars segment, which accounts for 7.9% of the EU27’s passenger cars segment. The Czech Republic is also one of the top two countries in the bus segment, accounting for 27% of the EU27 bus segment production in 2015, following Poland, which had a share of 29.6% in that year.
Production
Total vehicle production in the Czech Republic rose by 4.2% year-on-year in 2015, to 1.303mn units – the highest in the country’s history both as an independent state and as part of Czechoslovakia. The output of the “manufacture of motor vehicles, trailers and semi-trailers” sector increased by 11.5% y/y in 2015, following a growth rate of 13.5% y/y in 2014. This sector saw the highest rates of any industrial sector in 2014-2015 and was the greatest contributor to industry’s performance. The sector’s production was driven by increasing sales, which rose by 11.2% y/y in 2015, triggered both by export sales (up 10.6% y/y) and domestic sales (up 12.9% y/y).
Enterprises
The total number of enterprises in the “manufacture of motor vehicles, trailers and semi-trailers” sector reached 1,104 in 2014, down by 2% y/y. The sector is highly concentrated and its enterprises accounted for a mere 0.6% of the total number of enterprises in manufacturing in 2014, but generated 24% of manufacturing's total revenues. The majority of the enterprises (819 or 74.2% in 2014) operated in the “manufacture of parts and accessories for motor vehicles and their engines” subsector (CZ-NACE 29.3). However, they generated 52.2% of the sector’s total revenues in 2014 and employed 74.4% of its average number of employees in that year. High total revenues of CZK 498bn in 2014 were reported by the “manufacture of motor vehicles and engines” subsector, accounting for 46.7% of total sector revenues in that year. However, there were only 93 enterprises in the sub-sector.