Despite weakening markets across Europe, the Czech automotive industry had a record year in 2024. With rising production, growing exports and stable employment, it reaffirmed its key role in the domestic economy.
Record production, increasing export figures and a turnover of almost CZK 1.6 trillion – the Czech automotive industry can look back on a successful 2024. Despite challenging conditions in Europe, manufacturers and suppliers are holding their own as the backbone of the domestic economy, according to the latest figures from the Automotive Industry Association, AutoSAP.
‘The increase in turnover and vehicle production, as well as the stable share of total industrial output, prove that the automotive industry was once again the key growth driver of the Czech economy in 2024,’ says Martin Jahn, President of AutoSAP. In view of the weakening economy in Germany and other European countries, market uncertainties, and structural problems such as high energy prices and increasing regulation, this is ‘proof of the sector’s resilience and competitiveness’.
Production Record Despite Decline in Electric Vehicle Numbers
With just under 1.45 million passenger cars produced, the industry recorded a new high – an increase of 3.9 per cent compared to the previous year. The total number of road vehicles produced rose by 3.8 per cent to over 1.47 million. Only electric vehicles saw a decline: 151,407 units represent a drop of 16.3 per cent and a share of 10.4 per cent of total production.
Exports also rose slightly, up 3.1 per cent on the previous year. Germany remains the most important sales market with a stable share of 30 per cent, followed by the United Kingdom, France and – newly in fourth place – Poland. Slovakia dropped to fifth place.
Employment and Wages Continue to Rise
Despite the tight labour market, the automotive industry is managing to retain staff. At the end of 2024, AutoSAP member companies employed around 141,000 people. Average wages rose by 7.6 per cent to CZK 59,056 per month – roughly 31 per cent above the average for the rest of the manufacturing industry.
Questions About the Future Remain Pressing
Despite the positive results, key challenges remain. In addition to the need to modernise the education system, industry representatives are particularly critical of the lack of planning security in the field of electromobility. Miroslav Dvořák, Vice President of AutoSAP, is calling for a far-reaching reform of vocational training and closer links between universities and industry.
He also emphasises the need for swift reforms in immigration law, along with targeted programmes to attract highly qualified specialists from abroad. ‘But the foundation for everything remains a reliable outlook in European climate and industrial policy,’ Dvořák stresses. At present, he says, there is no clear, realistic course that would provide companies with predictability and investment security.
