The production of passenger cars in the Czech Republic fell by 29.7% y/y to 586,333 at the end of July, the Association of the Automotive Industry (AAI) said on August 24.

The largest Czech carmaker Skoda Auto produced 390,933 cars, 23.7% down compared to the first seven months of last year. South Korea’s Hyundai reported a 39% drop in production with 114,740 cars at its plant in Nosovice. By the end of July, the French-Japanese TPCA manufactured 80,660 vehicles, 40% down y/y. 

AAI expects a 20% decline in output this year as carmakers are not likely to make up the decline in production caused by the spring stoppage in the autumn months.

AAI president Bohdan Wojnar said there is an urgent need for further state help as reduced production by car factories would have a negative impact on the entire Czech industry.

"I am confident that the government will extend the wage allowance scheme maturing at the end of August to retain jobs and also take new measures to maintain the competitiveness of Czech industrial companies," he added.

Bus production is recovering at a faster pace as output increased by 12% to 497 in July. Production in the first seven months fell 8% to 2,728 units. Vysokomýtské Iveco produced 2,473 buses by the end of July, a drop of 7.6% from the base period.

The country’s only motorcycle manufacturer, Týnec Jawa rolled out 278 motorcycles this year, down 70% y/y.