The Czech Republic, in the heart of Europe's consumer market of 570 million people, has had an automotive industry since the earliest days of vehicle production at the beginning of the 20th century.
At the core of the Czech automotive sector is Skoda Auto, an increasingly profitable arm of the Volkswagen Group. Skoda Auto's green field production line for the Octavia model range, which began operation in 1996, is one of the most efficient automotive plants in Europe. Volkswagen's US$ 2.6 billion investment in Skoda Auto has acted as a catalyst in the upgrading of the entire Czech components industry.
One third of the Top 100 European Automotive Component manufacturers now have production facilities in the Czech Republic. In total, 82 joint ventures and green field operations have been put into production since 1991. Firms with foreign capital participation account for 46% of the Czech automotive industry, and their share of total production reaches 81%. The automotive component sector is one of the most rapidly expanding in the Czech economy.
A. MARKET HIGHLIGHTS & BEST PROSPECTS
Market Profile
The market in Czech Republic for car parts and components has grown significantly during the last several years. The size of the automotive market is the primary factor determining the growth of the automotive component industry, as the country's automotive component imports and production are dependent on the number of motor vehicles produced and sold on the Czech market or exported abroad.
The automotive industry developed dynamically after 1992, when Germany's Volkswagen bought a 70% stake in the Czech firm Skoda Auto and started to manage the company. The development of Skoda Auto pushes suppliers to increase the quality of products and services they offer. The production of passenger cars and accessories represents the major part of the automotive industry.
Automotive industry production has risen steadily since 1994. In 1995 it increased by 29.3%; in 1996 by 28.5%; and in 1997 by 41%. Production of automotive firms with foreign capital participation increased even more, by 46% in 1997. Final production companies increased production by 56% and auto parts producers by 43%. No other Czech industry sector has approached this high growth rate.
The automotive industry accounts for more than 11% of Czech machinery production and 14% of total exports of the Czech Republic. Total automotive industry production reached US$5.3 billion in 1997, with 50% represented by final production, 33% by production of accessories and only 9% by truck production. Production of passenger cars increased by 58% in 1997, and truck production by 64%. Since 1996, the automotive industry has been out of the red, and most producers in this sector are now making profit.
The economic recession in the Czech Republic decreased the number of vehicles sold in the country during 1998. During the first three quarters of 1998, 235,371 passenger cars were sold on the Czech market. Of these 54.38% were new and 45.62% used vehicles, a decrease in the new car market of 17.12% on a year-on-year basis.
A total of 21,630 trucks, including light commercial vehicles, were traded on the market, with 92.24% new and 7.76% used vehicles. The market for light commercial vehicles decreased by 22.99%, and the truck market decreased by 13.72%. Altogether 13,300 motor cycles and mopeds were traded on the market, with 55.5% new and 44.5% used vehicles. Only the bus market increased during this period, with an increase of 24.29%, or 701 buses sold.
Although the sale of motor vehicles on the domestic market continues to fall, the pace of the decline slowed in the third quarter of 1998. Analysts predict sales to remain stagnant in 1999. Further growth of vehicle sales in the near future will depend on overall development of the Czech economy and revival of economic growth. In the long term, analysts predict steady growth of vehicle sales in CEFTA countries of 6-8% until 2003.
Despite the recession on the Czech market during 1998, domestic firms in the automotive industry continued to increase production through active and successful export promotion. Production of motor vehicles increased by 17.14% during the first 9 months of 1998, with 318,675 vehicles sold.
Czech exports of motor vehicles increased by 44.6% over the first 10 months of 1998 and reached US$3.4 billion, or 14.3% share of total Czech exports. The majority of production is exported to the European Union, which increased its share over this period by 71.8% to account for 68% of Czech vehicle exports.
Import of motor vehicles to the Czech Republic reached US$1.9 billion, a 3% increase over the first 10 months of 1998. Of imported cars, 81% are imported also from EU countries, up 9.2% over the period.
The Czech market with motor vehicles is gradually developing, reflecting the actual buying power of inhabitants. It would be highly desirable to speed up the process of rejuvenation and, indeed, replacement of the existing motor vehicles on the roads in this country, although development and implementation of this process are, in terms of value per head of population, on relatively a high level.
According to data from the Central Vehicle Register of the Czech Ministry of Interior, as of December 31, 1997, there was one motor vehicle in the Czech Republic for every 2.95 people. The average age of a passenger car in the Czech Republic was more than 14 years.
There were 297,187 two-year-old vehicles (8.77% of all vehicles on the road); 336,113 three-to-five-year-old vehicles (9.9%), 719,810 six-to-ten-year-old vehicles (21.22%), and 2,038,431 vehicles aged 10 or more years (60.1%). The situation is similar for trucks, buses, and motor cycles.
Rejuvenation and the continuing replacement of motor vehicles on Czech roads also mean growing demands to improve standards of road safety, continue to eliminate negative effects of road traffic on the environment, and to lower petrol and oil consumption levels of the vehicles, hence lowering the operative costs.
According to the latest survey carried out by Imas-Marcon company at the beginning of 1999, around 14% of people plan to purchase a car in 1999. Half of them want to buy a new car and half of them a used vehicle.
Statistical Data
| Market Size (USD $ Million) |
1996
|
1997
|
1998
|
| Import market |
790
|
1,500
|
1,800
|
| Local production |
1,300
|
1,650
|
1,970
|
| Exports |
570
|
681
|
780
|
| Total market |
1,500
|
2,500
|
2,600
|
| Imports
from U.S. |
9,9
|
11,9
|
14,3
|
| Inflation Rate: |
1996
|
1997
|
1998
|
Projected
1999 |
|
8.6%
|
10.2%
|
9%
|
7%
|
Projected 1999:
| Last year's Import Market Share: | |
| Germany |
22%
|
| Italy |
20%
|
| France |
10%
|
| United Kingdom |
10%
|
| The Netherlands |
10%
|
| Belgium |
8%
|
| Spain |
5%
|
| Austria |
5%
|
| Poland |
5%
|
| USA |
0.7%
|
Best Sales Prospects
In the Czech Republic, the market for auto parts and components can be
divided into two submarkets: (1) parts and components delivered to original
manufacturers (OEM) and assemblers; and (2) the aftermarket - parts and
components delivered to service stations or by retail sale to individuals,
and used to replace and/or complement original equipment.
The major Czech OEM vehicle producer is Skoda Auto, whose policy of supplier
integration is described in a section IV.
US exporters face very strong competition from European companies, especially
Italy, Germany and France, Great Britain and Spain. EU exporters benefit
from common regulations and standards, preferential duties (see Section
V ) and geographic advantages for transportation. However, U.S. made products
are recognized in the Czech Republic for their high quality.
The geographical disadvantage can be overcome. Many U.S. companies have
successfully established production facilities in the Czech Republic as
a green field investment to supply the Czech and pan-European markets.
New investors are greatly welcomed and supported by enhanced investment
incentives recently approved by the Czech government.
A significant number of U.S. companies have established joint ventures
or bought a majority stake in a Czech auto parts producer. These companies
have been extremely successful.
There still exists a market for newcomers, as many Czech auto parts manufacturers,
especially those with a production intensive in research and development,
lack capital and seek foreign strategic investors. (See section III for
advantages for investments in the Czech Republic and examples of U.S.
firms present on the Czech market).
Regarding the aftermarket, U.S. auto parts are needed mainly for U.S.
cars present on the Czech market (see section IV.). CS Prague has contacted
many automotive component importers in the Czech Republic, and most of
them are ready to consider U.S. offers. (See the list of importers in
section IV.) Market opportunities exist for electronic equipment for car
users such as car phones, in-car entertainment, security equipment and
car care products.
Best sales prospects include:
| HS 851210 | Lighting equipment |
| HS 851290 | Car bulbs |
| HS 842123 | Filters |
| HS 870810 | Bumpers |
| HS 870880 | Shock absorbers |
| HS 870710 | Metal parts for body repairs |
B. COMPETITIVE ANALYSIS
Domestic market
Czech-owned Component Suppliers Exporting to Western Europe:
Many independent Czech component suppliers are now exporting components
into western European supply chains. Some more well-known examples include:
| GUMOTEX | Rubber parts for Mercedes and Audi, seat upholstery, head rests, sun visors, plastic parts for Skoda. |
| KARSIT | Seat parts for VW and Audi. |
| MITAS | Special rubber forms for auto manufacturers in Germany, Italy, Britain and the USA. |
| TESLA VRCHLABI LCD | dashboard panels for Mercedes, BMW, Opel, Philips, Blaupunkt and Lucas. |
Other Czech-owned and locally managed firms supply Skoda or act as sub-suppliers
exporting components to first-tier component firms or manufacturers overseas.
A key factor in their success is the capability to research, design and
tool their own components.
Leading Czech firms in the automotive components sector:
| ATESO | Brakes, shock absorbers, heaters |
| AUTOMETAL | Exhausts |
| BRISK TABOR | Spark plugs and glow plugs |
| CZ STRAKONICE | Transmissions for passenger cars, turbo intercoolers, gear chains, exhaust manifolds |
| JIHOSTROJ VELESIN | Hydraulic power circuits for power steering and tipping |
| KYDNIUM | Precision castings |
| MAGNETON | Electronics |
| MOEX | Hoses |
| MORAVAN | Restraint devices, interior fittings |
| MOTORPAL | Fuel injection systems for diesel engines and accessories |
| PAL MAGNETON | Ignition systems |
| PRAGA | Gearboxes |
| ZKL | Bearings |
The Czech Republic has been very successful in attracting many of the
world's leading automotive components companies for a combination of reasons:
low wage levels; a well-educated and flexible workforce which quickly
accepts new working practices; highly-trained and well-qualified researchers
and designers; a new generation of competent local managers; successful
implementation of 24-hour production; possibility to supply VW's Skoda
Automobilova; geographical proximity to other important car manufacturers
in Germany, Poland and Hungary.
Czech-based companies are shipping to Ford, VW, Audi, Mercedes, BMW, Opel,
Volvo, Seat, Mitsubishi, Toyota, Jaguar and Chrysler. Many of VW's international
suppliers now assemble and manufacture components in the Czech Republic
to supply both Skoda and the rest of the VW group, as well as other marques.
Foreign companies are a catalyst in upgrading the entire Czech automotive
components sector. Czech-owned firms form the majority of existing automotive
parts suppliers, but firms with foreign partners account for 57% of the
production.
US suppliers, joint ventures, green field investments
| Ford The largest foreign acquisition in Czech automotive industry was the July 1993 Ford Motor Company purchase of 100% of Autopal Novy Jicin, a Moravian manufacturer of car lighting systems, heat exchangers, fuel-oil exchangers, air-conditioning cores and hose sets. Ford Autopal's main customers, aside from its parent company Ford, include Skoda and Seat from Volkswagen group, Polish Fiat and Ukrainian ZAZ. The firm also makes modules for the Ford Mondeo, Escort and Transit ranges. |
| Tenneco,
which has 45 plants in 15 countries, - acquired a stake in Ateso, one of the largest Czech auto component manufacturers. Ateso is the sole supplier of shock absorbers to Skoda. Other parts manufactured include hydraulic and air brakes. Tenneco also supplies BMW, Audi, VW Mercedes and Daewoo Avia. |
| Hayes Lemmerz Autokola signed a joint venture in October 1993 with Nova Hut to produce steel wheels for passenger cars, tractors and trucks. It supplies Skoda, Opel, Audi, Zetor and Tatra. It was the first firm to win benefits from the original Czech investment incentive package unveiled in April 1998, after announcing an US$26 million green field expansion to produce aluminum wheels, mainly for Skoda Auto. |
| Textron controls the Kautex auto textiles plant sited near Skoda Auto. |
| Johnson Controls has four plants in the Czech Republic making seat covers and interior fittings. |
| TRW established three plants in Czech Republic: TRW - DAS, making steering and suspension products; TRW Carr, making seat belts and fastening systems; and TRW Autoelektronika making plastic and metal switches and electronic modules. TRW now owns the former Canadian Magna steering wheel plant at Horni Pocernice near Prague, after acquiring two Magna subsidiaries, MST Automotive GmbH and Temic Bayern-Chemie Airbag GmbH. Magna bought the former Volant plant in 1995. |
| AMP recently completed an US$21 million automotive parts plant in Kurim, north of Brno, which will eventually employ approximately 750 people. The U.S. firm is one of the world's largest producers of connectors. It supplies German and French car manufacturers. |
| Automotive Safety Components International (ASCI) has opened an air-bag manufacturing plant in Jevicko. The investment in Moravia is the U.S. firm's largest manufacturing plant in Europe. |
| Lucas Varity bought a 60% share in Ateso, a leading Czech brakes producer in 1993, and created Lucas Autobrzdy. It manufacturers discs and drum hydraulic brakes and complete rear axles for Skoda Felicia. It supplies Skoda, Volvo, Mitsubishi and Lucas Varity and plans to supply also Renault and General Motors from 1999. From 1998 Lucas Varity Automotive owns 100% of Lucas Autobrzdy. |
| Rockwell bought a plant in Liberec making door and window parts. |
Foreign suppliers, joint ventures, green field investments
| Continental One of the most successful non-US foreign acquisitions of a Czech component supplier was German Continental's purchase of the Barum tire plant in Otrokovice, Moravia, in 1993. Barum is now Continental's largest tire plant in Europe and is an integral part of the German corporation's global plans. Barum is one of Europe's most dynamically developing firms, with production sharply rising for 9 years. It supplies Skoda, VW, Opel, Seat, Volvo, Renault, Peugeot, Fiat and BMW. So far, Continental has invested US$167 million in Barum and plans to invest an additional US$33.3 million in technologies in 1999. Recently, Continental acquired the ITT brakes factory in Jicin as a result of its US$1.93 billion purchase of the brake and chassis unit of the U.S. firm. Continental also owns a stake in Buzuluk Komarov, a manufacturer of piston rings. |
| German Robert Bosch GmbH has four separate plants in the Czech Republic manufacturing components for brakes, traction control, fuel injection systems, tank pump modules, suction piping, cylinder head covers, and electronic fuel pumps. It supplies Opel, Fiat and BMW. |
| South Korean Daewoo's ambitious plans to penetrate the European market will utilize the engineering skills of Czech truck maker Avia to develop a new engine and truck. Daewoo's US$235 million commitment will also be used to modernize Avia's present engine to the latest environmental standards. |
| Siemens' six manufacturing operations in the Czech Republic, its automotive division, Siemens Automobilova Technika, is the largest and most successful. Siemens established one green field plant in Stribro and is constructing a second in Pilsen to manufacture cable harnesses for BMW. A third production facility in Frenstat pod Radhostem manufactures onboard driver and information systems. Siemens intends to increase production of automotive cables and electrical parts by investing more than US$20 million in the Czech Republic. |
| Canadian Magna International made two separate investments in the Czech auto industry. A green field plant producing suspension, seat and brake parts was established near Prague. Its principal customer is BMW. Magna also acquired Volant Horni Pocernice, a manufacturer of steering wheels for Skoda and others. Recently, Magna was acquired by TRW of the United States. |
| Showa, Japanese aluminum castings producer has an US$22 million production site in Kladno supplying Volvo, VW and Audi. |
| Hella, the German lighting firm, is creating a joint venture with Behr to be sited close to its existing green field in Mohelnice, central Moravia. |
| Schade, a subsidiary 30% owned by Hella, is planning to expand its workforce from 470 to 700 by the year 2000 as it boosts production of car doors. |
| VDO, a subsidiary of German Mannesmann, has a new green field plant in Brandys nad Labem to make automotive pumps and dashboards. |
| Akuma, owned by Italian Fiamm, is reportedly investing US$4 million to double its production of batteries. |
| Showpla, a Japanese firm, will invest approximately US$5 million in a plant to manufacture plastic parts for the electronic and automotive sectors. |
|
Other foreign firms investing in the Czech Republic:
|
C. END-USER ANALYSIS
Domestic Manufacturers:
|
SKODA
AUTO, a.s.
|
|
Volkswagen
Aktiengesellschaft Contact
persons: |
The Czech
automotive industry is dominated by SKODA AUTO, the leading Czech industrial
enterprise, which is based in Mlada Boleslav, 40 km north of Prague. Since
1991, the firm has been managed by the Volkswagen Group which holds a
70% stake and has invested US$2.6 billion upgrading SKODA AUTO'S three
factories. SKODA AUTO is the fastest growing of the Volkswagen Group's
four marques.
1994 saw the arrival of the Felicia range of five-door hatchbacks, estate
cars, vans and pick-ups. In October 1996, SKODA AUTO introduced a second
model range, the Octavia, which is doing well in the most competitive
class in the automotive market. The Octavia green field manufacturing
plant is the most efficient in Europe.
SKODA AUTO is developing a new Skoda car to complement the existing Octavia
and Felicia ranges, which should appear in the year 2001. Volkswagen corporation
will invest US$562 m to build an engine and transmission factory in Mlada
Boleslav. Construction will begin in 1999 and production should start
in 2001. Engines of 1.0 and 1.4 liters will form two thirds of the production.
The rest will be transformers. The capacity of the factory will be 500,000
engines a year. The output should be used in an assembly of a new model
of Skoda. Potential suppliers of machinery and equipment for the new factory
should contact the Wolfsburg headquarters as soon as possible.
Production levels at SKODA reached 410,000 units in 1998 and are expected
to reach 500,000 in 1999.
SKODA AUTO is importing a large number of parts to meet the higher specifications
of the Octavia range. The current Felicia boasts close to 80% domestically-sourced
parts, while Octavia, which shares a platform with the Volkswagen Golf
and Audi A3, is slightly more than half local content, and the successor
to Felicia, expected in late 1999, may have as little as 40% Czech parts.
Fifty-two joint ventures with foreign partners and 38 green field investments
have been established to supply the VW/Skoda Mlada Boleslav operation.
To cut supplier costs and ensure quality standards, SKODA is taking major
strides to integrate suppliers. So far, SKODA has arranged seven joint
ventures between local Czech component manufacturers and foreign companies
to produce components for the Octavia. These new ventures are located
directly on the SKODA site, permitting improved quality control, reduced
costs and faster design and production changes. These integrated suppliers
include: SIEMENS/ALLIBERT, MERITOR, IRAUSA, JOHNSON CONTROLS, GUMOREC,
EXPERT, HP PELZER. SKODA will continue to integrate suppliers of large
volume and complexity-demanding modules. In every decision concerning
suppliers, the principle of optimum quality, technology, prices and delivery
times is adhered to.
| DAEWOO
AVIA, a.s. Beranovych 140 199 00 Praha 9 Tel.: 00420-2-858-0041(-4) Fax: 00420-2-8388-2117 Commercial vehicles with GVW from 5950 kg - 8200 kg, Assembling of commercial vehicles Lublin with GVW from 2900 kg to 3500 kg |
| TATRA,
a.s. Stefanikova 163 742 21 Koprivnice Tel.: 00420-656-891-111 Fax: 00420-656-721-148 Trucks, light commercial vehicles Beta |
| SKODA
LIAZ, a.s. Belgicka 400 466 21 Jablonec nad Nisou Tel.: 00420-428-25045 Fax: 00420-428-24790 Trucks |
|
PRAGA,
a.s. Multipurpose vehicles UV80 |
|
AVIA
KAROSERIA BRNO, a.s. Commercial vehicles (superstructures) with GVW 6 tons approx. using a different truck chassis, e.g., platform trucks with extended cabs, boxvan trucks in various modifications |
|
ZETOR,
a.s. Tractors |
|
KAROSA,
a.s. City buses, line service buses and luxury coaches |
| BSS METACO, a.s. - semi-trailers and trailers, municipal waste collection vehicles, linear and rotative pressing system |
| DESTA, A.S. - zavod 09 - light commercial vehicles Destacar with loading capacity 1.5 tons fitted with various exchangeable superstructures |
| JAWA, a.s. - motorcycles |
| MOTO UNION, a.s. - motorcycles |
| MTX RS, s.r.o - MTX Cabrio cars, MTX Beach Buggy cars |
| PRAGA, a.s. - Multipurpose vehicles UV80 fitted with many special superstructures for different works, road and off-road operation, sports motorcycles for motocross and enduro |
| ROUDNICKE STROJIRNY A SLEVARNY, a.s. - special off road vehicles, trucks, agriculture machines for soil cultivation and sowing |
| SOR LIBCHAVY, s.r.o. - small buses |
| SKODA ELCAR, s.r.o. - light utility vehicles BETA |
| SKODA MNICHOVO HRADISTE, a.s. - commercial vehicles (trucks and road tractors) with road train GVW 12 - 42 tons in many modifications |
| TOVARNA HASICI TECHNIKY, s.r.o. - fire tankers and foam fire fighting vehicles, rescue and recovery vehicles |
Importers of Automotive Parts, Repair and Garage Technology
| ACI,
S.R.O. Veslarsky ostrov 62 147 00 Praha 4 Tel.: 00420-2-6121-4010, -6121-5939 Fax: 00420-2-6121-4035 The company specializes in importing spare parts for cars. Note: This company has been contacted by CS Prague office. It has no U.S. cooperators to date, but would welcome business offers. |
| ALBAMOBIL,
S.R.O. Kutnohorska 39/42 109 00 Praha 10 Tel.: 00420-2-9000-3778 Fax: 00420-2-705-367 E-mail: amobil@vol.coz The company imports from Germany (GELHARD, RUD KETTENFABRIK), France (MPAFRANCE) and Italy ( LAMPA, MENABO, ALFA ACCESSORI, CEDA VICENZA AND OTHERS). - car accessories: snow chains, baby car seats, seat covers, plastic car accessories, immobilizers, horns, tools, car-care products, wiper blades, battery testers, fuel and diesel filters, fuses etc. - car audio: systems Gelhard, car radios, CD - changers, speakers, equalizers, car radio accessories, antennas etc. - motorcycle helmets and accessories. Note: This company has been contacted by CS Prague office. It is not considering cooperation with U.S. companies at the moment as it sees no market for expensive high-quality components in the Czech Republic to date. |
| ALCA
TRADE, S.R.O. Branicka 93 147 00 Praha 4 Tel.: 00420-2-4446-3610 Fax: 00420-2-4446-2662 E-mail: alca@lantanet czn.cz The company imports and sells equipment and materials for car repair shops, mechanical, painting and body shops and for car washes. Materials are distributed from the Prague warehouse to end users via a net of contracting dealers. ALCA imports from renowned foreign contracting producers: AC-HYDRAULIC - garage and transmission jacks, presses, cranes BLOWTHERM - painting and drying booths, preparation stations DATALINER - straightening benches with laser measuring systems DRESTER - painting gun cleaners, infrared dryers EQUALIZER - special tools for automotive glazing ROTARY - electro-hydraulic lifts of all types UNIOR - workshop hand tools others. Note: This company has not yet been contacted by CS Prague. |
| AUTOBEBX,
S.R.O. Na stare 37 159 00 Praha 5 Tel.: 00420-2-9000-1709 Fax: 00420-2-9000-1708 Contact person: Mr. Milan Mazuch, Business Director The company imports a wide range of automotive parts and accessories from many foreign suppliers, mainly from France, Spain and Belgium. Note: This company has been contacted by CS Prague. It knows the market very well and is ready to meet any foreign partners and provide information. It is very interested in receiving offers from U.S. companies, especially for high quality filters and bumpers. According to Autobebx, U.S. companies can succeed on the Czech market by introducing interesting novelties through a specially designed marketing strategy. |
| AUTOCORA
OS, S.R.O. U vozovny 2B 100 0 Praha 10 Tel.: 00420-2-705-003 Fax: 00420-2-705-046 Wholesaler, imports car body repair parts and materials: metal and plastic parts for body repairs, lighting, radiators, body fillers and sealants, from foreign suppliers: VALEO, HELLA, BOSCH, EMBO, APG, FIFFT, ISAM, EURO STAMP, R2A, RETEL CAR, KLOKKERHOLM KAROSSERIDELE ETC. Note: This company has been contacted by CS Prague. AUTOCORA does not now distribute any American products, but is ready to consider interesting, price-competitive offers. They are especially interested in importing lighting, metal plates and bumpers. |
|
AUTOP
BOHEMIA, S.R.O. AUTOP imports technological equipment for both services and painting shops. Technology suppliers: DURST LACKIERANLAGEN, SATA FARBSPRITZTECHNIK, HAMACH from Germany, USI-GLOBUS ITALIA from Italy and DRESTER from Sweden. Paint equipment suppliers: KOVAX DEUTSCHLAND from Germany and 3M from USA. Note: This company has not yet been contacted by CS Prague. |
| AUTO-PRIMA,
S.R.O. Seifertova 31 130 00 Praha 3 Tel.: 00420-2-6284-554 Fax: 00420-2-6284-553 The company imports brake parts, oil, fuel, air and hydraulic filtration, etc. from foreign firms: FRAM, KONI, A.B.S., QUINTON HAZELL, AUTOLITE, BENDIX, JIRID, TRICO, GREENSEAL, PM PETROMARK, ALLIED SIGNAL, etc. Note: This company has been contacted by CS Prague. AUTO-PRIMA is importing U.S. auto parts from the subsidiaries in the Netherlands. They are interested in reliable U.S. offers. U.S. products must comply with Czech technical norms. U.S. firms must be flexible and offer favorable delivery terms. |
| AUTOSKLO-SERVIS,
S.R.O. Prazska 16 102 21 Praha 10 Tel/Fax: 00420-2-758303, 757987 The company is a specialized distributor of automobile glasses: windshield, rear, side window, roof glasses, window handling tools, glues etc. It sells to wholesale customers and dealers in throughout Europe. Note: This company has been contacted by CS Prague. AUTOSKLO-SERVIS imports American products from U.S. subsidiaries in Europe. They are ready to accept high quality U.S. offers, wotj the decisive factor to be wide range of assortment rather than price. |
| AUTO
STANGL Strakonicka 120 159 00 Praha 5 Tel/Fax: 00420-2-581-0854, -5732-0593 Importer of changeable parts and motor parts, wholesale and retail, car repair activities, sale of Renault and Volvo cars. Imports shock absorbers, spark and fire plugs, filters, cables, valve lifts, steering parts and chassis, piston sets, chains, valves, brake parts, axles, etc. Suppliers: MONROE, CHAMPION, EALKER, LUK, FEDERAL MOGUL, TRW, MAHLE, GOETZE, IWIS, LOCKHEED, NISSENS, GATES, ROULUNDS, DINEX, and others. The business network includes 13 regional business partners, 180 authorized service points on thee whole area of the Czech Republic. Note: This company has been contacted by CS Prague. It is one of the most important distributors on the market. They are planning to widen the range they distribute and are interested in interesting U.S. offers of high quality changeable parts. |
| BEZO,
S.R.O. Hoblikova 15 613 00 Brno Tel/Fax: 00420-5-575369 The company is an importer of a large assortment of spare parts for European personal cars. It imports high quality products from many renowned producers, such as ball joints, wheel kits and bearings from IRB TORRONGTON, drive shafts from GENERAL RICAMBI, boots from GOMET, filters from TECNECO, brake holes from PIMAX etc. Note: This company has not yet been contacted by CS Prague. |
| CEPA,
S.R.O. Antala Staska 30 142 00 Praha 4 Tel/Fax: 00420-2-6922-338 The company imports mechanical parts for vehicles made by FIAT, PEUGEOT, RENAULT, VOLKSWAGEN, FORD, OPEL, LANCIA, DACIA, OLTCIT, LADA and SAMARA, from almost 30 suppliers, mainly from Italy. It delivers to more than 300 permanent customers in the Czech Republic, among them small and large garages and car parts shops. Note: This company has been contacted by CS Prague. CEPA specializes on imports from European countries due to favorable pricing. It is not considering establishing new business contacts at the moment. |
| ELIT,
S.R.O. Svetova 9 180 00 Praha 8 Tel.: 00420-2-6833-838 Fax: 00420-2-6631-0060 The company sells car parts, car accessories, diagnostic devices and tools such as clutches and shock absorbers, brake pads and lining, ignition and glow plugs, belts, filters, exhaust systems, wheel bearings, etc. It imports from: SACHS, TEXTAR, GATES, SPIDAN, VALEO, HELLA, ABA, CORTECO and others. Note: This company has not yet been contacted by CS Prague. |
| IHR
AUTODILY, S.R.O. Antala Staska 30 146 20 Praha 4 Tel.: 00420-2-692-0281 Fax: 00420-2-692-2833 The company delivers spare parts for foreign cars in the Czech and Slovak Republics. It imports a complete assortment, including fuses, switches, tools, spark plugs, filters, shock absorbers, break pads, etc. from BERU, BOGE, OPTIBELT, CONTITECH, ITW DEVCON, ELRING KLINGER, LITTELFUSE, MINTEX, KNECHT, WAHLER, CHETRA and others. Note: This company has been contacted by CS Prague. It represents two U.S. firms at present and is ready to consider other offers. It appreciates the high quality of U.S. products but would welcome better product support, broad public promotion and more competitive prices. |
| IMKOMPLEX,
S.R.O. Nad Kajetankou 7 160 00 Praha 6 Tel.: 00420-2-6771-1772 Fax: 00420-2-6771-1772 The company imports spare parts for foreign cars, especially different parts of car bodies. It constantly increases its product range, and is interested in those necessary for repairing crashed cars. These are headlights, radiators, steering pivots and exhaust mufflers. It is an exclusive distributor of cleaners produced by Italian TECNOCAR. It has also been very successful with distributing roof carriers of all kinds in the Czech Republic. Note: This company has been contacted by CS Prague. IMKOMPLEX does not represent any U.S. company at the moment but would be interested in establishing contacts. Price competitiveness is decisive. |
| JS
TRADING, S.R.O. Prazska 63 102 00 Praha 10 Tel.: 00420-2-9004-9014 Fax: 00420-2-9004-8996 The company specializes in import of garage equipment and acts as an exclusive agent for several foreign manufacturers: CAR-O-LINER AB - car benches, RAVAGLIOLI - lifts, tire equipment, COMEC - machining equipment, TONA, WAP etc. Note: This company has been contacted by CS Prague. It has been importing from Europe only, using the price advantage. It would welcome new products on the market, with a combination of price and quality playing the key role. |
| KABE,
S.R.O. Na kovarne 8 101 00 Praha 10 Tel/Fax: 00420-2-724-683 The company imports engine parts, undercarriages, brakes, suspension parts and repair kits, electrical components and accessories from suppliers: AN ENGINE PARTS, AJUSA, AMC, DOLZ, ELODA, FIRST LINE, MOTARAD, OSVAT, SIENSA and others. Note: This company has not yet been contacted by CS Prague. |
| KTH,
V.O.S. Dvorska 129 503 11 Hradec Kralove Tel.: 00420-49-553-2159 Fax: 00420-49-35104 The company specializes in the sale of car electronics. It delivers all types of bulbs used in Europe. It distributes NARVA car bulbs, which belong to concern PHILIPS. It also imports battery clamps, bearings, hoses and hose clamps, exhausts, seals for home vehicles etc. Note: This company has been contacted by CS Prague. KTH is very interested in importing U.S. car bulbs, which are not present on the Czech market so far and could be used in American cars imported to the Czech Republic. It is ready to consider offers with a competitive combination of quality and price. |
| UNIVER,
S.R.O. Preperska 1809 511 01 Turnov Tel.: 00420-436-23381 Fax: 00420-436-21272 The company imports a complete assortment of equipment and technologies for service stations. It is an exclusive agent of more than 20 renowned foreign companies, such as: BEISSBARTH GmbH (diagnostics of undercarriage sets), HAZET-WERK (excellent hand tools), GRUNDIG (eminent engine testers), RODCRAFT (air-operated tools of high quality), AREX (platform testing devices for brakes), NEWAY (special tools for valves and their inserted seats), MITYVAC (engine diagnostics), GAITHER TOOL (tools) and others. Note: This company has been contacted by CS Prague. It has very good knowledge of the market and visits all major automotive fairs in Europe. It imports some U.S. products through the Netherlands and Germany. It is ready to consider offers from U.S. firms. It considers the Czech market well saturated but always sees a chance to find a new market niche. |
| Best-selling cars in the Czech Republic: (during the first 10 months of 1998) | |
| Skoda |
59,069
|
| Ford |
7,688
|
| Volkswagen |
5,056
|
| Opel |
4,766
|
| Renault |
3,820
|
| Fiat |
3,446
|
| Daewoo |
2,442
|
| Peugeot |
2,294
|
| Seat |
2,214
|
| Mazda |
2,138
|
| Toyota |
2,020
|
| Honda |
1,840
|
D. MARKET ACCESS
Import climate
There are no trade restrictions on imports of cars and automotive components
from the United States, other than import duties. However, U.S. imports
face tough competition from imports from the European Union countries,
which benefit from lower import duties due to the Association Agreement
between the Czech Republic and the EU.
Import duties on cars were lowered on January 1, 1999 from 18.1% to 17.1%
for imports from the non-EU countries and from 7.24% to 3.42% for imports
from EU countries. Some, but not all, importers announced decreases in
car prices as a result of the lowered duty.
Import duties on automotive components have been generally low, ranging
from 3.2% to 7.3% in 1998, and were lowered again on January 1, 1999 to
3.0% - 6.3%. Automotive components produced in the EU can be imported
into the Czech Republic with no duty. Some of the foreign auto-parts producers
use this advantage and import components to the Czech Republic from their
European production facilities.
Most imported automotive parts do not need any approval before being sold
in the Czech Republic, although some parts must meet EU standards and
obtain approval from the Ministry of Transportation and Communications.
These parts include active and passive safety equipment, such as safety
belts, lighting equipment, mirrors, exhaust systems, brake systems, and
exhaust systems.
Approvals
can be only issued to a Czech entity - either a subsidiary of a foreign
firm or a Czech business partner. Applications should be addressed to:
|
Ministry
of Transportation and Communications:- If
the Ministry decides homologation is needed, tests are carried out
by:- Contact
person: Mr. Michal Jiranek |
VI. KEY CONTACTS
| Ministry
of Industry and Trade (Ministerstvo prumyslu a obchodu) Ing. Petr Havranek Director of Department for Automotive Engineering Na Frantisku 32 110 15 Prague 1 Tel.: 00420-2-285-3539 FAX: 00420-2-285-3370 |
| Automotive
Industry Association of the Czech Republic (AIA) (SAP - Sdruzeni automobiloveho pr myslu) The AIA is a voluntary association of manufacturing, commercial and other companies which make up the Czech and Slovak automotive and allied industries. It covers almost the whole of the automotive sector, with 96 members and observers in the Czech Republic. Director: Ing. Antonin Sipek International Relations Deputy Manager: Jaromir Stefl Opletalova 29 110 00 Praha 1 Tel.: 00420-2-266-788 Fax: 00420-2-261-501 e-mail: sapdol@bohem-net.cz http://www.autosap.cz |
| Car
Importers Association (SDA - Svaz dovozc automobil) Official exclusive
accredited importers of different vehicle makes. Secretary General: Ing. Zdenek Lnenika Assistant Secretary: Eva Vernerova Na str i 63 140 62 Praha 4 Tel.: 00420-2-6114-2018, 6114-2011 Fax: 00420-2-420-105 e-mail: sda@ms.anet.cz http://www.sda.rtvdata.cz |
|
The Union of Automotive Repair Shops of the Czech Republic (SALR - Svaz autoopraven leske republiky) This voluntary professional body comprises mainly repair shops and similar businesses (garages, tire repair shops, and car washes), but also vehicle dealers, rental car firms, spare parts and accessories producers, and distributors because many such businesses have combined activities. President:
Ing. Josef Lhotak |
|
The
Automotive Parts and Garage Equipment Importers Association
(SISA - Sdruzeni importeru soulasti automobilu a garazove techniky
This newer aftermarket association already comprises the 27 strongest
companies (imports-distribution-wholesale-retail etc.) which started
business after 1989. It is a member of FIGIEFA. President:
Ing. Ivan Paggio |
|
The Society of Dealers of Automobiles, Motorcycles, Spare Parts and Accessories (SPA - Spolelenstvi prodejcu automobilu, motocyklu, jejich nahradnich dilu a pislusenstvi) Association
of approximately 90 companies in distribution and aftermarket. Chairman:
Bedfich Danda |
TRADE PROMOTION OPPORTUNITIES
|
AUTOTEC
International Motor Show of Passenger Cars and Light Utility Vehicles
|
| INTERNATIONAL
ENGINEERING FAIR September 13-17, 1999 Brno Trade Fairs and Exhibitions (BVV) Organizer: Brno Trade Fairs and Exhibitions (BVV) Vystaviste 1 647 00 Brno Tel.: 00420-5-4115-2994, 4115-3040, 4115-2934, 4115-3014 Fax: 00420-5-41153042 E-mail: info@bvv.cz http://www.bvv.cz The most important specialized exhibition of engineering in Central and Eastern Europe. It does not focus on automotive industry products, but they are also exhibited there. In 1998, 2,841 companies from 36 countries exhibited in this fair on an area of 81,608 sqm. |
| INTERNATIONAL
FAIR OF COMPONENTS, ACCESSORIES, SERVICE TECHNOLOGY AND EQUIPMENT
FOR AUTOMOBILE INDUSTRY (ASA) October 21-24, 1999 Vystaviste Praha Organizer: Incheba Praha a.s. Opletalova 23 110 00 Praha 1 Tel.: 00420-2-2421-2673, 2289-4258 Fax: 00420-2-2421-0798 Altogether 130 firms exhibited on the compound of shows, Autoshow, ASA and Transped, in 1998 on an area of 7,115 sqm. |
Source:
U. S. Department of Commerce - National Trade Data Bank, November 3, 2000
Demographics & Economic Situation
|
| Population age structure |
| Marriage age by region |
| Full demographic details |
| Key Economic Indicators |
Source: Factbook.net
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