With Škoda Auto and TPCA both launching new models, Czech car output is expected to increase by 6 percent to 1.2 million vehicles this year. This would set a new record, beating the 2011 high of 1.195 million cars. “Demand in Europe has probably bottomed out and is expected to increase by 1 to 2 percent this year,” Martin Jahn, president of the Czech Automotive Industry Association, told ČTK. However, the Russian-Ukraine crisis may have a negative impact on the sector, Jahn said, predicting that it will probably take a few years before the situation in the region stabilizes. Jahn pointed out that the depreciation of the Russian rouble impacted Volkswagen sales. This could also impact Škoda Auto sales.
Employment for manual jobs in the Czech car industry remain flat, while in R&D employment increased by 10 percent. TPCA created 650 new jobs with its new model launch, Jahn said.
