Kopřivnice-based Tatra Trucks, the world’s second-oldest truck manufacturer known for its heavy-duty off-road vehicles with unique chassis for military and civilian use, is facing rising global demand for thousands of vehicles. As a result, the company must significantly ramp up production, placing it in a different position compared to most European automakers. However, this brings its own specific challenges.

The European automotive industry is struggling with increasing competition and various challenges, including stricter EU emissions regulations, safety requirements under the General Safety Regulation, pressure to support electromobility, lingering effects of the COVID-19 pandemic on supply chains, deteriorating security conditions, and the energy crisis. While many manufacturers struggle, producers of niche vehicles in high demand, such as Tatra, face challenges that others might envy.

Tatra Trucks is currently experiencing a situation where global customer demand far exceeds its current production capacity. Scaling up production for specialized vehicles like Tatras, which carry substantial added value, is no simple task. The company’s growth is partly thanks to its partners within the CSG Group, which secure orders for its vehicles from all over the world. However, the challenge lies in the complexity of manufacturing Tatras, which offer users unique and sought-after capabilities.

The company is responding logically to the market situation by investing in new production technologies and hiring employees. By December, the workforce had grown by 250 people compared to the beginning of the year. Salaries have increased by an average of 14%, ensuring that all employees share in the company’s success—a hallmark of well-managed firms. However, production has not yet grown as quickly as customers might wish. Nevertheless, for the company’s leadership, this is a better situation than the opposite scenario—a drop in demand.

The significant gap between demand and supply remains a complex challenge, and solutions cannot be immediate or fully satisfying for everyone. Issues exist both within Tatra and its suppliers, who, for various reasons, are struggling to keep pace. Although production will see substantial year-over-year growth, achieving this has required immense effort at all levels—hard work that is well-compensated but, given the scale of demand, still feels insufficient.

Delivered by CzechTrade team Canada.
Source: CZ Defense.