Car production in Slovakia should not fall below 900,000 vehicles this year

The Slovak automotive industry faced the impacts of the pandemic and a chip shortage in 2021.

Robots assemble vehicles in the carmaker Kia Slovakia.Robots assemble vehicles in the carmaker Kia Slovakia. (Source: Sme)

The four carmakers operating in Slovakia should have manufactured at least 900,000 vehicles this year, the Slovak Automotive Industry Association (ZAP) estimates. In the first half of the year, the Bratislava-based Volkswagen Slovakia, Kia Slovakia near Žilina, the Nitra-based Jaguar Land Rover and the Trnava-based Stellantis produced more than 555,000 vehicles. At the beginning of 2021, ZAP predicted that full-year production would again exceed 1 million units. Last year, carmakers in Slovakia produced about 985,000 cars.

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“2021 was marked by the continuing battle against the pandemic and the measures that had to be introduced during production to ensure the protection of workers from the spread of the pandemic,” said ZAP secretary general Ján Pribula, as cited by the SITA newswire. “At the same time, the effects of the pandemic on the entire supply chain began to manifest themselves, with the industry seeing material shortages and rising prices.”

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In addition to the pandemic and lack of chips, the main issues for car manufacturers were the rising prices of raw materials and energy, as well as the notification of magnesium shortage from a global perspective. In terms of creating legislative framework, one theme was the elaboration of the European Commission’s declaration of the Green Deal and the Fit for 55 package.

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“In Slovakia, in addition to support measures to maintain jobs, we positively acknowledge the systemic solution of this support, this being the adoption of the law on short-term work, i.e. the so-called kurzarbeit,” said Pribula.

ZAP has also welcomed the approval of Slovakia’s Recovery and Resilience Plan; the amendment to the Income Tax Act that enacts a super deduction on investment; and in terms of customer care the association appreciated the fundamental reassessment of access to certified repair sites in the Vehicle Operation Act.

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