Domestic car manufacturers are thriving—reaching record revenues of CZK 1.6 trillion and accounting for a tenth of the Czech GDP. However, the joy of success is overshadowed by the situation beyond the borders, where traditional Western brands are hitting a wall due to market transformation. 'European automakers are facing a major drop in demand, primarily because China can produce electric vehicles significantly cheaper,' comments Jan Boubín, an economist from NEWTON University, in a report for TV Nova's Televizní noviny.
The automotive industry accounts for a quarter of Czech exports and is the country's largest investor in robotization. Although domestic production of passenger cars and buses is experiencing a great period, experts warn about the future. A lack of qualified staff, expensive energy, and fierce Asian competition represent a serious threat to the whole of Europe. While the Czech industry is holding up for now, giants like Volkswagen are considering massive layoffs, and Audi is moving production to Mexico.
How will Europe handle the transition to electromobility, and will the Czech Republic maintain its strong position? Watch the expert analysis in the full report.
