Czech automotive output rebounds strongly

Czech passenger car production grew 14% on-year in June to 142,874 units, taking six-month output up 22% on-year to 738,454 units, according to Czech Automotive Industry Association (AIA) data seen by Kallanish.

Passenger car exports in June rose 6.6% to 125,147 units, while domestic sales surged 24% to almost 10,000 cars.

Largest carmaker Skoda saw first-half output rise 32% to 464,353 cars, while Hyundai’s production grew 6% to 177,100 units and Toyota reported a 9% increase to 97,001 cars.

Production of buses meanwhile fell 4.3% in H1 to 2,511 units, while output of trucks dropped 0.6% to 649 units.

The Czech Republic is Central and Eastern Europe’s largest car manufacturer, sourcing automotive steel from US Steel Kosice (USSK) and ArcelorMittal among other suppliers, and producing most cars for export.

Like in neighbouring Poland, Czech car production has rebounded strongly this year as carmakers look to clear their substantial order backlog following the easing of components shortages. Automotive is one of the few steel end-use sectors forecast to see growth in the EU this year. However, there are fears that production will ultimately decline again as new order intake is weak amid a slowing economic environment.

Adam Smith Poland