Coronavirus crisis reduced car production by an estimated 20 percent in Slovakia

ZAP proposes to use Recovery Fund money to build new alternative fuel charging stations.

The autimotive industry is one of main pillars of the Slovak economy. The autimotive industry is one of main pillars of the Slovak economy. (Source: Courtesy of VW SK)

Car production in Slovakia is expected to have plunged by some 20 percent this year. These are the first estimates of the Automotive Industry Association of the Slovak Republic (ZAP).

Last year, Volkswagen Slovakia, Kia Motors Slovakia, Groupe PSA Slovakia, and Jaguar Land Rover produced more than 1,100,000 vehicles. Behind this year’s decline are the coronavirus pandemic and the spring production stoppage by all carmakers in Slovakia.

“Carmakers, and along with them their suppliers, are currently in full swing,” said Ján Pribula, secretary general of ZAP, as cited by the SITA newswire. “We believe that this will remain so and none of the measures will influence us. However, production was stopped in March and April. This decline cannot be offset now, hence we expect a drop compared to the record-breaking year of 2019, of approximately 20 percent.”

Related articleCar industry needs to jump on the latest trends Read more 

ZAP considers overcoming of all the consequences of the coronavirus crisis to be a major challenge for the whole industry for 2021. The sector expects that problems caused by the crisis will recede in 2021, but on the other hand, it is concerned about the setting of the future cooperation between the EU and UK.

“Subsequently, it is necessary to create in Slovakia conditions for support and development of investments, increasing competitiveness and improving the business environment so that we secure sustainability for the automotive industry,” said Pribula.

ZAP considers political ambitions to reduce emissions and their constant and fundamental changes to be the greatest threats to the sector. It also perceives the Slovak education sector and sufficiency of qualified labour force as risk factors.

In addition, Pribula also drew attention to the problems arising from failure to manage the processes related to the recovery plan.

“European countries plan to use the funds, for example, for development of infrastructure for alternative fuels,” he said. “The European Commission supports such usage of money from the Recovery Fund and at the same time it plans to introduce mandatory quotas for member states to build charging points for alternative fuels. Slovakia is on the tail of Europe in the number of charging stations. If the quotas come into force and we do not use money from the Recovery Fund, we will have to cover the costs from the state budget.”

Related articleInvestmet Guide: Your key to understanding the Slovak business environment Read more 

Top stories

News digest: Slovakia marks anniversary of one of its biggest accidents in water transport

People are obliged to show Covid passes, the Bratislava's Old Town promotes its most beautiful trees and construction of the traditional ice house in the High Tatras has started.


13 h
Opening of the time capsule of Michael's Tower.

Time capsule stored in Bratislava's St Michael statue 176 years ago reveals its secrets

The public can see the items found in the box in the Bratislava City Museum at the Old Town Hall this weekend.


15 h
About 100 to 110 Tatra chamois live in the NAPANT national park, central Slovakia, but only two are white.

New Low Tatras attraction fascinates and worries hikers

Two white chamois have been observed in the national park, but their colour exposes them to danger.


21. okt
Skryť Close ad