AUTOMOTIVE STUDY 2025 / Šaroch (ed.) et al.

Fig. 3.39: Industrial producer price indices in the Czech Republic: NACE 29 groups (2015 average = 100)

Source: Czech Statistical Office; CZ-CPA CL 291, CL 292, CL 293

3.7 Brief characteristics of the Czech Republic as one of the production bases of the European automotive industry e Czech Republic is one of the largest automotive manufacturing bases in Europe. More than ninety percent of the approximately one and a half million cars produced here annually, as well as a large part of the components produced, are destined for export markets. e sector thus makes a signi cant contribution to the country’s industrial output. It contributes signi cantly to value added and, to a lesser extent, to employment. It is a sector that is mainly capital-intensive, and its labour requirements (in terms of the number of employees needed) are relatively low. An even more signi cant deviation in favour of exports compared to the volume of domestic production can be observed in the case of electric cars, whose production in the Czech Republic has already reached around two hundred thousand per year. e sector, as elsewhere in the world, is dominated by nal producers. ese are also the ones with the best values for productivity, pro tability and average wages. Among other things, the strong pressure exerted by nal producers on suppliers seems to have led to the fact that, in an environment of disrupted supply chains and rising prices for energy and other inputs, their pro tability is often negative. is leads to the question in the future whether the supply chain will be transformed in such a way that part of the domestic suppliers will be replaced by foreign ones, or whether vertical integration of part of the chain (buy-outs and consolidation of failing supply companies) will be a forced solution for nal producers.

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