The automotive industry is one of the key industries and a driving force of the economy in Slovakia. Slovakia is the world’s biggest car producer per capita, as well as the 7th biggest car producer in the EU, and 20th in the world. Almost every year, over 1 million cars are manufactured in Slovakia. The vehicle production accounts for 12% of the whole GDP and 35% of the exports in Slovakia. The industry is the source of employment for more than 80,000 people in the country.
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Overview of the Slovak Automotive Industry
The automotive industry has been growing since the declaration of Sovereignty of the Slovak Republic in 1992. It has attracted a lot of foreign direct investment. Bratislava, the capital city of Slovakia, Trnava, Žilina, Martin, and Nitra are the main industrial sites for automotive production. More and more car component producers shift the sites of their main operations to Slovakia. Today, the country is working on the development of the industry such as implementing the latest technologies on the construction of the new plants and increasing the productivity and the value of the production. Although the country produces high-quality products that are not being categorized as low-cost, with its highly-qualified workforce it is still relatively cost-effective in its region and in Europe in general.
Slovakia also plays an important role as a supplier of high-quality products to other plants in Europe. Its strategic geographic location not only enabled Slovakia to be the center of car production but also the main country in the supplier network.
Biggest car producers in Slovakia
Four major worldwide known automotive companies operate in Slovakia: Volkswagen since 1991 in Bratislava, Martin, and Stupava, PSA (Peugeot Citroën) since 2003 in Trnava, and Kia Motors since 2004 in Žilina and Jaguar Land Rover in Nitra since 2016.
Automotive Producers in Slovakia
- Year of Establishment: 1991
- Vehicles produced: Volkswagen Touareg, Audi Q7, Audi Q8, Porsche Cayenne, Porsche Cayenne Coupé, Volkswagen up! and electric cars Volkswagen e-up, SEAT Mii electric, ŠKODA CITIGOe iV
- More than 99% of production is exported to 158 countries around the world.
- The largest markets for vehicles are Germany, the USA, and China.
- Year of Establishment: 2003
- Models: Peugeot 208, Citroën C3 Picasso.
- Number of employees: 3,500
- The production of electric cars in Trnava from 2020
- Year of Establishment: 2004
- Employees: around 3,800
- Capacity and products: 350,000 units a year, 2 car models, 5 types of engine
- Investment amount:1.8 billion euros
Jaguar Land Rover Slovakia
- Year of Establishment: 2016
- The production for the British car producer in Slovakia started in 2018
- The models: Land Rover Discovery and Land Rover Defender.
- Employees: 1500 (30% women)
- The first plant in Europe that has Kuka’s Pulse carrier system that provides over 30 percent faster transfer times.
Invest in the automotive industry in Slovakia
- You already know that investing in Slovakia brings your business into the most strategic location in Europe between western and eastern markets.
- More than 350 automotive suppliers create a perfect network for your business.
- Political stability and using EURO makes your business not just a short-term investment but provides solid ground for long-term and successful business outlook.
- High labor productivity, cost-effective, skilled and educated labor force.
- Growing R&D centers and innovation network.
- Focus on E-mobility.
Slovakia has grown to become one of the leading car producers in the world. The automotive industry has a promising future with recent investments in technology to innovate the industry. The country is already in the position to produce more advanced cars with the electric drive that is predicted to take over 15 percent of the whole production by 2025.