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New Report Shows Skoda Facing Stiff Competition in the Domestic Czech Auto Marketplace - Report Buyer, the online destination for business intelligence for major industry sectors, has added a new report which offers an in-depth outlook of the car market in Czech Republic
New Report Shows Skoda Facing Stiff Competition in the Domestic Czech Auto Marketplace

 

PRZOOM - /newswire/ - London, United Kingdom, 2008/11/20 - Report Buyer, the online destination for business intelligence for major industry sectors, has added a new report which offers an in-depth outlook of the car market in Czech Republic.

   
 
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The report “Czech Republic Autos Report Q4 2008” highlights that the Czech carmaker Skoda is struggling with declining sales in the domestic market, despite the fact that Czech Republic’s car market continued to strengthen in H108.

In the first half of 2008, Czech car sales rose 8.7% year-on-year (y-o-y) to 73,455 units. Although Skoda maintained its dominant position in the Czech Republic, its market share is declining with sales down 10.1% y-o-y in H108. While most of Skoda's production is export oriented, the company occupies 30.3% of the domestic passenger car market in which foreign competitors present a significant challenge to Skoda's continued pre-eminence.

Automotive production is also set to witness strong growth, largely as a result of current investment plans. In H108, Czech automotive production was up 10.1% y-o-y to 533,901 units, of which 512,087 were exported. However, the industry is increasingly affected by exchange rate differentials between the Czech crown and the euro. Cost price rises could also limit carmakers ability to offset losses caused by appreciation, says the report.

The Czech Republics automotive output in 2012 is likely to be more than double the level seen in 2005, due to the opening of the Hyundai plant in 2008, the expansion of the existing Skoda plant and a rapid increase in production at the TPCA plant. The report forecasts automotive production reaching 1.1mn units in 2008, a 17.5% y-o-y increase. Growth in output is being stimulated by exports. In H108, exports of passenger cars and light commercial vehicles rose by 15.6% y-o-y to 507,854 units.

The Czech Republic scored 55.8 points in the automotive business environment rating this quarter, down 0.1 points over the previous quarter. The modest drop in score has not affected its rank in third place, 4.4 points behind Poland and 2.4 points ahead of Romania.

“Czech Republic Autos Report Q4 2008” is available from Report Buyer. For more information, see website.

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Report Buyer is a UK-based independent online store supplying business information. The website now carries over 85,000 business information products, including market reports, studies, books and events. Subscribers receive a free monthly newsletter and email alerts on new titles in their areas of interest. A regularly updated blog provides information on the latest market trends.

 
 
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New Report Shows Skoda Facing Stiff Competition in the Domestic Czech Auto Marketplace

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