Industry Trend Analysis - Limited Capacity To Hold Back Czech Vehicle Output - MAY 2017

BMI View: Czech vehicle production growth will slow over our forecast period as major passenger car plants in the country reach their capacity limits. We are, therefore, revising down our vehicle production growth forecast to average 2.0% annually over the full 2017 to 2021 forecast period.

From 2017 through to 2021, we are revising down our Czech Republic vehicle production growth projections to an annual average rate of 2.0%, down from 4.7% previously, with total annual output reaching almost 1.49mn units in 2021. This downward revision is due to key plants across the country coming closer to their capacity limits.

Only three manufacturers account for the whole national production landscape for mass-produced passenger cars in the Czech Republic. These being: Volkswagen's subsidiary, Skoda, with its two local plants, Hyundai Motor's with one local plant, and the Toyota Motor and PSA Groupe joint venture plant, TPCA. Yet two of these manufacturers, Skoda and Hyundai, are reaching their production limits while TPCA is unlikely to utilise much more of its excess capacity under current market conditions.

Output Growth To Slow As Capacity Limits Draw Near
Czech Republic - Vehicle Production, Units
f = BMI forecast. Source: National sources, BMI

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