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Coronavirus bill: Car production in the Czech Republic fell by a third in the first half of the year

According to the president of the association Bohdan Wojnar, the decline in production corresponds to the development of demand for new vehicles in the European Union.

Sales of new passenger cars in the EU fell by 22.3 percent year on year in June, with a quarter of a million fewer passenger cars registered than in the same period last year. “Even though the decline is slowing down compared to previous months, the almost quarter-on-year drop in demand still means a huge loss for the entire production chain,” said Wojnar.

All three carmakers in the Czech Republic had to stop production for several weeks due to coronavirus in the first half of the year. From January to the end of June, Škoda Auto produced 337,580 cars, which is a year-on-year decrease of 28.2 percent. Production from the Hyundai Nošovice carmaker fell by two-fifths to 96,390 cars, and TPCA produced 69,645 small cars, ie 40.3 percent less than in the first half of last year.

“In recent weeks, decisions are being made on further developments. Many industries are linked to the automotive industry. Therefore, it is essential that the state supports this sector, which is a pillar of the domestic economy, and invests in its future prosperity. Whether in the form of direct employment support through the extension of the Antivirus program, or through measures to support investment, such as the Ministry of Industry and Trade’s proposed significant acceleration of depreciation, “added Wojnar.

Bus production in the first half of the year fell by 11.9 percent to 2,231 vehicles, but after the resumption of production, the specific custom production in the segment became fully apparent. Vysokomýtské Iveco produced 37 more vehicles in June than in June 2019, and 1,999 buses left the factory gates in the first half of the year. SOR Libchavy increased production by 73.3 percent to 52 cars in June and produced 223 in the entire first half of the year. Overall, June bus production increased by 13 percent to 516 buses.

Tatra Trucks from Kopřivnice continues to prosper, which did not interrupt production even during the coronavirus crisis. In the first half of the year, it produced 628 trucks, ie 143 more than in the first half of last year.

The only Czech motorcycle manufacturer, Týnec Jawa, produced 249 machines in the first half of the year. Compared to the previous year, it was a decrease in production by 637 motorcycles.

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