William Malcolm

Czech Auto Production Falls 21%

Production of passenger cars in the Czech Republic fell by 21.4 percent to 937,033 vehicles in ten months. It is almost three percentage points lower than in three quarters. In October, despite the advent of the second wave of the coronavirus pandemic, production was higher for the first time since February, rising 2.8 percent year-on-year to 128,754 cars. According to the Association of the Automotive Industry.

Production at Škoda Auto fell by 17.8 percent to 614,669 cars from January to the end of October. Hyundai produced 190,089 vehicles, which is 27.9 percent less year-on-year, and Cologne’s TPCA, with a production of 132,275 cars, also reported a drop of 27 percent.

According to the association’s representatives, it is clear that despite the massive finish, the total loss will not be caught up this year, and this dramatic decline will have a significant negative financial impact on companies and the Czech economy.

“Despite all the difficulties, the automotive industry is pulling the Czech economy in the autumn. This is reflected not only in the final manufacturers but also in the supply sector. Employees due to the ordered quarantines, the need to care for children, or hygienic measures in operation, “adds Zdeněk Petzl, Executive Director of the Association.

The bus production segment is also mitigating the loss caused by spring outages. By October, 4,037 buses had been produced in the Czech Republic, down 6.3 percent year on year. In October alone, however, production was 5.7 percent higher. Iveco made 3,652 vehicles (-4.6 percent), SOR Libchavy supplied 365 buses to the market (-19.3 percent), and KH Motor Centrum Opava a total of 20 buses, eight less than last year.

The only motorcycle manufacturer, Týnec Jawa, produced 416 machines this year. Compared to the previous year, it recorded a decrease in production by 59.3 percent. In October, it delivered 37 motorcycles to the market, which is half the year-on-year increase.

“We are anxiously watching the progress of the second wave of the pandemic across the EU, which again brings with it a fundamental reduction in economic life. Therefore, we call on the Czech government to restore safe operations such as dealerships and,” added the president of the association Bohdan Wojnar.