Car manufacturing in the Czech Republic has experienced a significant decline in the first quarter of 2025, with production falling by 7.1% to 366,510 vehicles. The Automotive Industry Association (SAP) attributes this decrease to sluggish demand recovery in major European markets, resulting in an 8.3% drop in exports to 340,354 cars. However, domestic market deliveries showed promise with an 11.7% increase to 26,156 vehicles.

Škoda Auto, the country’s largest automaker, reported a 2.8% decrease in production to 236,524 vehicles. Despite this overall decline, the company achieved remarkable growth in its electric vehicle segment, with a 282% increase to 48,442 units, including 40,866 battery-electric vehicles and 7,576 plug-in hybrids.

The industry’s shift toward electrification continues to gain momentum, with total electric vehicle production surging by 141% to reach 64,956 units in Q1. This includes 50,377 pure electric vehicles and 14,579 plug-in hybrids. The launch of new models, such as the Škoda Elroq and updated Enyaq, has sparked market interest, though emission regulation targets remain a challenge.

Other manufacturers also faced challenges, with Hyundai’s Nošovice plant reporting an 18% production decline to 71,540 vehicles, while Toyota experienced an 8.6% decrease to 58,446 units, with their hybrid Yaris HEV accounting for nearly 60% of production.

Source: CzechDaily

Prepared by the team of foreign offices CzechTrade Osaka and Tokyo