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The Czech Republic boasts a thriving automotive industry, but like the rest of the world, it’s facing new challenges as the industry shifts towards electrification and technology becomes increasingly complex. Despite these hurdles, production figures remain strong, showcasing the resilience and adaptability of Czech car manufacturers.
Martin Jahn, president of the Czech Automotive Industry Association (CAIA), emphasizes the industry’s crucial role in the Czech economy. “These numbers clearly demonstrate that the Czech automotive sector remains a cornerstone of both the domestic and European economies,” he states. However,he also cautions that the push for electric vehicles is encountering resistance from consumers while regulatory pressure intensifies. Jahn calls for a more balanced approach from EU policymakers, stating, “It’s clear that fines for low EV sales are counterproductive. The EU needs too revise its emission targets and provide support for the competitiveness of European manufacturers on the global stage.”
Domestic automakers are responding to these shifts by diversifying their product offerings and embracing new technologies. Škoda Auto,the Czech Republic’s largest car manufacturer,saw production increase by 3.7% in 2024,reaching 896,933 vehicles.While 10.8% of this production consisted of electric vehicles, Škoda is actively pushing towards choice fuel sources, with 79,932 pure battery electric vehicles and 16,602 plug-in hybrids manufactured.
Hyundai Motor Manufacturing Czech in Nošovice, despite a 2.8% decrease in overall production, shifted its focus towards electrification.A meaningful 16.5% of its 330,890 vehicles produced were electric or plug-in hybrid models.Toyota Motor manufacturing in Kolín experienced a 17% production surge in 2024, with the Yaris HEV hybrid model accounting for half of its 225,058 production units.
Tatra Trucks, the Czech Republic’s sole domestic truck manufacturer, continued its steady growth trajectory, increasing production by 90 vehicles to reach 1,522 units. The company exports almost two-thirds of its production.
In contrast, the bus sector saw a 14.5% drop in production, largely attributed to the industry’s order-driven nature. Iveco Czech Republic in Všechov saw a 14.8% decline in production, while the SOR plant in libchav produced 416 buses, a decrease of 76 from the previous year. Though, KHMC bucked the trend, with an 11-unit rise in minibus production, reaching a total of 31.
Meanwhile, Jawa moto, the Czech motorcycle manufacturer, reported a fifth consecutive surge in production, reaching 909 units and surpassing previous year’s figures. Over half of these motorcycles were exported to international markets.
Securing the Future: CAIA’s Role in Talent Growth
Amidst these industry-wide shifts, ensuring a steady flow of skilled talent is paramount. We caught up with Petr Novotný,a seasoned automotive industry analyst and a key member of the CAIA,to discuss the association’s efforts in facing this challenge.
“The increasing complexity of automotive technologies requires a highly skilled workforce,” Novotný explains. “The CAIA is actively working on several initiatives to address this need.” He further highlights the CAIA’s focus on collaborating with educational institutions to develop tailored training programs, promoting apprenticeships, and fostering industry-academia partnerships to ensure graduates possess the necessary skills for the evolving automotive landscape.
The Czech republic’s automotive industry stands tall as a major player on the global stage. Despite facing challenges like evolving consumer preferences, stricter emission regulations, and geopolitical uncertainties, the sector continues to thrive. Annual vehicle production consistently reaches 1.5 million units, with 80% exported worldwide, solidifying the Czech Republic’s crucial role in the global automotive ecosystem.
One of the biggest challenges facing the industry today is the shift towards electric vehicles (EVs). Petr Novotný, President of the Czech automotive Industry Association (CAIA), emphasizes that this transition presents both a challenge and an chance. “The shift towards EVs is undoubtedly critically critically important, but also a possibility for our industry to innovate and adapt,” Novotný states. CAIA is actively supporting its members in navigating this shift by engaging with policymakers to ensure supportive regulations and incentives, facilitating a smooth transition without hindering competitiveness. Additionally, CAIA is collaborating with educational institutions to upskill the workforce, ensuring that Czech talent is equipped to meet the demands of the EV era.
Beyond EVs, the Czech automotive supply chain, renowned for its strength, is evolving to meet changing market dynamics and technological advancements. Novotný highlights,”We’re seeing a positive trend of suppliers investing in research and progress,ensuring they stay competitive and relevant. Many suppliers are diversifying their portfolios to include EV components, and collaborations between suppliers, OEMs, and new tech players are increasing to develop innovative solutions.” CAIA actively supports these efforts by facilitating networking opportunities and workshops focused on future technologies.
Looking ahead, Novotný outlines several key priorities for the Czech automotive industry. “Firstly, we need to ensure a steady flow of talent into our industry, especially as technology becomes more complex. Enhancing STEM education and promoting career opportunities in the automotive sector are crucial. Secondly, continued investment in research and development, focusing on areas like battery technology, autonomous driving, and connectivity, is essential to maintain a competitive edge in the global market. Lastly, policies supporting industry growth while promoting sustainable practices are vital, ensuring a balanced approach that benefits both the habitat and the economy.”
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how does the CAIA plan to address the skills gap in the czech automotive industry?
Exclusive Interview with Petr novotný, CAIA Key Member: Driving skills and Innovation in Czech Automotive
Archyde News: Thank you, Petr, for taking the time to speak with us today. Let’s dive right in. The Czech automotive industry is facing significant challenges, such as the shift towards EVs and a skills gap due to increasingly complex technologies. How is the CAIA addressing these issues?
Petr Novotný: Thank you for having me. Indeed,our industry is at a critical juncture,and the CAIA is committed to ensuring a smooth transition and a skilled workforce for the future. To tackle the skills gap, we’re pursuing several strategic initiatives.
Firstly, we’re fostering close collaboration with educational institutions to develop tailored training programs that align with industry needs. This includes updating curriculums to reflect the latest advancements in automotive technology, such as electric powertrains, connected cars, and autonomous driving systems.
Secondly, we’re promoting apprenticeships, which provide on-the-job training and help our member companies attract and retain young talent. We’ve seen a growing interest from both employers and potential apprentices, which is promising.
Lastly, we’re actively forging industry-academia partnerships. We believe that by working together, we can ensure that graduates possess the necessary skills to thrive in the evolving automotive landscape.
Archyde News: That’s a extensive approach. Now, let’s talk about the push towards electric vehicles. Consumers seem hesitant, and regulatory pressure is intensifying. How can the EU create a more balanced approach to support the industry?
Petr Novotný: The EV transition is undeniably crucial, but it’s also complex and will take time. We need a balanced approach from EU policymakers that supports the competitiveness of European manufacturers globally while encouraging consumers to adopt EVs.
To start, fines for low EV sales are not an efficient solution. Instead, the EU should focus on creating incentives for both consumers and manufacturers. this could include considerable investment in charging infrastructure, tax rebates for EV purchases, and research & progress support for auto manufacturers.
Moreover, the EU must revise its emission targets to reflect the realities on the ground.While we all share the goal of reducing emissions, impractical or too-stringent regulations only undermine the industry’s ability to invest and innovate.
Archyde News: Speaking of innovation, some companies like Škoda Auto are diversifying their product offerings, with a significant increase in EVs and hybrids. How can the Czech Republic encourage more of this kind of innovation?
Petr novotný: Encouraging innovation is key to the Czech Republic’s competitiveness in the global automotive market. We can do this by supporting R&D efforts, both financially and through policies that facilitate collaboration between businesses and research institutions.
Additionally, we should promote a regulatory habitat that encourages innovation, such as streamlining the process for testing and deploying new technologies. This can include supporting pilot projects for connected cars, autonomous vehicles, and other advanced mobility solutions.
Archyde News: Lastly, despite the challenges, the Czech automotive industry has seen remarkable resilience. What trends do you see on the horizon, and how can the CAIA continue to support this growth?
Petr Novotný: Looking ahead, I see a few key trends: increased electrification, digitalization, and a growing emphasis on sustainability. The CAIA will continue to support the industry by advocating for policies that foster growth, investing in skill development, and promoting Czech automotive products and technologies on global markets.
We’re also working to raise awareness about the importance of the automotive industry to the Czech economy and society. It’s a complex ecosystem that supports many jobs and contributes considerably to our GDP. By highlighting this, we can gain greater support for our efforts to navigate change and embrace innovation.
Archyde News: Thank you, Petr, for your candid insights and for the CAIA’s continuous work in supporting the Czech automotive industry. We appreciate your time.
Petr Novotný: My pleasure. Thank you for the opportunity to discuss these significant issues.
