Market Monitor Automotive Czech Republic 2017

Market Monitor

  • Czech Republic
  • Automotive/Transport

5th September 2017

Robust sales have kept profit margins of car producers and suppliers stable, and these are expected to maintain their current level in the coming months.

  • The automotive industry plays a pivotal role in the Czech economy, accounting for more than 7% of GDP and more than 20% of exports (mainly to EU countries). The Czech Republic hosts three major car production companies Škoda, Toyota Peugeot Citroën Automobile (TPCA) and Korean Hyundai. There are many local suppliers, and the Czech steel/metals and plastics industry depends heavily on the automotive industry´s performance.
  • According to the International Organization of Motor Vehicle Manufacturers OICA, in 2016 car production increased 8.3% to more than 1.3 million units. All three major manufacturers grew their production, and output has increased further in H1 of 2017. The outlook remains benign, mainly due to robust demand from eurozone countries.
  • Robust sales have kept profit margins of car manufacturers and suppliers stable and these are expected to maintain their current level in the coming months. Payment behaviour is generally good with a low number of non-payment notifications, and this is expected to remain unchanged in the coming months. The insolvency level in this industry is expected to remain low.
  • Suppliers generally benefit from long-term contracts with stable payment terms, volumes and margins, while banks are open to provide business loans.
  • As a result of increasing orders, growing revenues and low payment default and insolvency cases in this industry, our underwriting stance remains open.

Related Documents


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.