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Doing Business in the Czech Republic II. Czech Industry

AUTOMOTIVE INDUSTRY IN THE CZECH REPUBLIC

Thanks to its long industrial tradition and the ability to compete successfully at the global level, the Czech Republic boasts one of the greatest concentrations of automobile production, design, research and development worldwide. In 2017, altogether 1.4 million cars were made in the Czech Republic according to the AutoSAP Association of the Automotive Industry. This means that the Czech Republic is the fifth largest manufacturer of motor vehicles in Europe and the largest car maker in Central and Eastern Europe. The Czech automotive industry employs more than 150 000 people and accounts for more than 20 % of Czech industrial production and for more than 20 % of total Czech exports. More than one-half of the world´s top 100 tier-one suppliers for the automotive industry are based in the Czech Republic, which underlines its long-term orientation on quality.

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In 2017, the Czech automotive industry achieved outstanding results, which makes it largely responsible for the growth of the Czech economy as a whole. 2017 is also the year marking a number of historic records in car making, thus creating the basis for the continuation of this trend also in the year 2018. In 2017, historically the best year for final stage producers, the Czech Republic maintained its position as Europe´s and the world´s number one in per capita bus production and second position in per capita car manufacture worldwide. The Czech Republic occupies 5th place in Europe and 17th place in the world in the manufacture of motor vehicles. Supplier firms, too, take credit for the growth of the Czech automotive industry in 2017. The favourable development of this segment of the Czech automotive industry is best shown by the growth of its revenue, which rose by 3.4 % year on year. Suppliers are among the largest AutoSAP exporters. Czech car part manufacturers account for more than 42 % of Czech automotive industry exports.

ECONOMIC RESULTS IN THE FIRST HALF OF 2018

In the first six months of 2018, AutoSAP´s member firms turned out more than three-quarter million cars. Their production rose by 0.3 % to 758 475 cars. ŠKODA AUTO, the largest of them, continued to follow its growth trend. Its revenue rose by 5.1 % to EUR 9.161 billion, for the first time surmounting the EUR nine billion mark in the first six months of the year. Between January and June this year, its car deliveries to customers rose by 11.6 % to a new record high of 652 700 cars. TPCA in Kolín increased its production by 1.8 % to 110 094 cars, while Hyun-

dai in Nošovice showed a decline of 9.3 % to 171 250 cars, because of planned temporary shutdowns at the beginning of the year. Bus production increased by 2.5 % to 2 375, of which Iveco increased production by 2.6 % to 2 121 vehicles; SOR showed a growth of more than 6 % to 236 vehicles. Truck production declined by 44.5 % to 431. Avia, after renewing production, manufactured 29 trucks in the first half of the year. The orders for trucks and buses came from the company sector, of which, unlike car manufacture, a characteristic feature is great shortterm volatility. Motorcycle production dropped by 14 % to 746 motorcycles, turned out by Jawa Moto in Týnec.

THE YEAR 2017 AS SEEN BY AUTOSAP MEMBER FIRMS •��The firms´ revenue in 2017 rose by more than 7 % and their exports by more than 6 % •��Altogether 1.4 million motor vehicles rolled off the lines •��The number of employees increased by nearly 6 %, to 126 000 •��The average wage rose by more than 7 % to CZK 37 400

THE YEAR 2017 AS SEEN BY AUTOSAP MEMBER FIRMS •��The revenue of final stage manufacturers in 2017 rose by 10 %, the same as their exports •��The manufacture of road vehicles increased by 5.1 % year on year to 1 446 543 •��Car manufacture in 2017 rose by 5.2 % to 1 413 881

•��A massive increase was shown by truck manufacture, which increased by 11.7 % to 1 481 •��Bus manufacture grew by 5.5 % to 4 631 •��The production of motorcycles increased by 8.4 % to 1 331 •��The production of trailers and semi-trailers increased by 2.1 % to 25 219

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