Deloitte’s Survey: Czech Automotive Industry
Only 5% of respondents are considering relocating production to another CE country.
What are the key competitive advantages and disadvantages of the Czech automotive industry? What are producers’ expectations towards suppliers and what is the suppliers’ stance? Answers to these questions are provided by Deloitte’s survey conducted in 2017 among the automotive industry’s representatives.
- The vast majority of respondents (95%) are not thinking about relocating their production in the next five years.
- The low cost of work, availability of grants and incentives as well as the cost of energy are the main competitive advantages of the Czech Republic.
- A slight increase in production in the next five years is projected by 60% of respondents.
- Reliability of the legal system, educational system and poor infrastructure/ logistics are the key competitive disadvantages.
“In general terms, the outlooks of the Czech automotive industry seem to be optimistic. Automotive leaders are aware of potential risks and are planning to address them. The unreliability of the legal system, educational system and the Czech infrastructure are among the persistent issues,” concluded Petr Michalík, Partner at Deloitte.
The survey also highlighted interesting findings with regard to investment incentives and producers’ expectations from suppliers and vice versa. Do you want to find out more? Download the study Outlooks of the Automotive Industry – 2017 Survey (PDF).