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Slovakia Autos Report Q1 2012
Business Monitor International, December 2011, Pages: 45
The Slovakian motor industry is set to have a relatively positive 2012. BMI forecasts that production growth will slow in 2012 to 4.75% from 6% in 2011, which is a reduction from the original forecast of 12% growth, but in the context of an increasingly dire European economy this growth is to be welcomed. BMI believes that 590,000 vehicles will be produced in 2011 and 618,371 will be produced in 2012. This is of course contingent on significant economic shocks being avoided, but the Slovakian industry is fundamentally strong.
There have been encouraging developments on the production front. Trnava will be one of the production sites for the new Peugeot 208. The small car is being introduced to replace the Peugeot 207 in the company’s line-up in the first half of 2012. In addition to Slovakian production, the car will also be produced at the Poissy plant outside Paris. It is not yet clear how many will be produced in Slovakia, but the company is planning eventual worldwide 208 production of 500,000 units a year. The decision to move from the 207 to the 208 is a major development for Peugeot’s business as the 208 is replacing what has so far been a best-seller. The model is understood to be lighter and smaller than the 207 but nevertheless will offer greater interior room.
Production of the Kia Venga is to move to Slovakia. The Korean automaker announced the move in October 2011. Previously the Venga had been made at the Hyundai plant in the Czech Republic. The company is investing EUR40mn into adapting the production line to allow Venga production, prompting the creation of a third shift and second engine shop at the factory. Some 1,000 new workers will be hired as part of this expansion. Kia’s Zilina plant has an annual production capacity of 300,000 and also produces the Sportage CUV and the cee’d range of cars. The company has said that its models have seen strong demand in Europe, prompting this move to allow greater annual production in-house.
Peugeot announced that it is laying off 5,000 workers in Europe, though has categorically stated that none of these redundancies will occur at the firm’s Slovakian operations. Indeed, the company has said that it is intending to hire 800 new staff in early 2012. The company has said that it is intending to start a third shift at the plant in order to reach 300,000 units a year maximum capacity. The plant has seen production increase in 2011, with analysts expecting growth from 2010’s production figure of 186,150 units.
Business Monitor International's Slovakia Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Slovakia's automotive industry.
Slovakia Autos Industry SWOT
Business Environment SWOT
FTAs Will Boost Already Strong Import Sales
Table: BMI Industry Risk-Reward Ratings For Autos In Europe
Industry Forecast Scenario
Production And Sales
Table: Slovakia Auto Production And Sales
Table: Slovakia Autos Trade
Macroeconomic Forecast Scenario
SLOVAKIA – Economic Activity
Manufacturers – Passenger Cars
PSA Peugeot Citroën
- Volkswagen (VW)
- PSA Peugeot CitroëE
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