Light vehicle assembly in the Czech Republic in 2005-2010 grow by 81%

European light vehicle assembly growth to be driven by Central Europe

26 July 2006 - Total European light vehicle assembly figures are set to grow by nearly 2.8 million units by 2010, representing a 14% increase, according to findings by the PricewaterhouseCoopers Automotive Institute. Much of this growth will be driven by Central Europe and will be led by Slovakia (429%) and the Czech Republic (81%), which combined will contribute 41% of the expected growth in European light vehicle assembly.

Reflecting a shift towards lower cost assembly bases in Central Europe, traditional Western European automotive assembly markets such as France (3%) and Spain (5%) are expected to see only moderate growth. Assembly in the UK is expected to decline by 16% by the end of the decade.

“Hyundai, whose factory in Nošovice should start production in 2008, with final production capacity being 300 000 cars per year, should contribute the most to the growth in the volume of production in the Czech Republic”, stated Marek Romancov, Senior Manager of Tax and Legal Services at PricewaterhouseCoopers Czech Republic.

Overall Europe will contribute 30% of the 9.1 million units of incremental global assembly growth. But this will only marginally eclipse the expected contribution of China (28%).

Russia is benefiting from localised emerging market capacity investment to meet growing demand. It is expected to grow by 36% from 2005-10 to 1.63 million units.

Germany is set to retain its current position as the largest total unit manufacturer in Europe. Fiat’s resurgence means Italy is expected to grow by 35% from 2005 to 1.35 million units, making it the fourth fastest growing market in Europe.

Christian Martin, European Automotive leader, PricewaterhouseCoopers said:

“As manufacturers and suppliers shift production to Eastern Europe it brings about a whole new set of economic dynamics; both in the territories they withdraw from, as well as those they enter in to.”

END

Notes to the editor:

1. European Light Vehicle Assembly 2005-2010

   Global Size Rank Country (EU/EE Top 20) 2005 2006 2007 2008 2009 2010 3 Germany 5,214,765 5,143,448 5,171,751 5,358,588 5,471,574 5,609,043 6 France 3,500,079 3,212,199 3,118,181 3,378,879 3,600,113 3,592,922 7 Spain 2,647,929 2,543,863 2,620,021 2,494,642 2,747,827 2,781,597 10 United Kingdom 1,775,954 1,650,572 1,702,921 1,687,284 1,650,109 1,496,285 13 Russia 1,200,533 1,296,538 1,358,839 1,428,360 1,528,117 1,626,759 15 Italy 1,000,509 1,178,398 1,249,093 1,339,788 1,326,719 1,350,778 16 Belgium 894,484 913,804 962,206 961,663 978,882 970,694 18 Turkey 828,799 886,213 862,711 910,477 1,105,292 1,132,570 19 Poland 615,874 676,643 667,024 694,285 709,883 688,786 20 Czech Republic 577,339 785,170 752,554 746,821 952,757 1,045,938 27 Sweden 288,540 301,339 306,968 358,444 357,854 363,120 28 Austria 230,248 236,782 206,514 183,960 185,973 192,565 29 Portugal 216,210 194,419 188,184 207,236 191,353 183,112 30 Ukraine 212,832 232,424 236,287 236,154 249,587 256,598 31 Romania 194,609 194,268 218,918 246,791 247,463 238,687 32 Slovenia 177,951 119,623 128,586 169,676 146,072 132,159 34 Slovakia 160,681 271,441 551,099 701,972 784,629 849,739 35 Hungary 147,906 204,401 261,210 287,295 266,329 247,424 37 Netherlands 115,121 93,108 65,418 61,933 57,531 0 38 Uzbekistan 104,375 112,807 112,430 109,559 107,203 102,131  EU/EE Top 20 Total Assembly 20,104,738 20,247,460 20,740,915 21,563,807 22,665,267 22,860,907 Global Total Assembly 62,672,407 64,505,265 66,603,475 68,873,581 70,861,234 71,775,656 EU/EE Top 20 (% of Global Total ) 32.10% 31.40% 31.10% 31.30% 32.00% 31.90%

   
   

   Global Size Rank Country ( EU/EE Top 20 ) Unit Diff. % Chg CTG % 3 Germany 394,278 7.60% 4.30% 6 France 92,843 2.70% 1.00% 7 Spain 133,668 5.00% 1.50% 10 United Kingdom -279,669 -15.70% -3.10% 13 Russia 426,226 35.50% 4.70% 15 Italy 350,269 35.00% 3.80% 16 Belgium 76,210 8.50% 0.80% 18 Turkey 303,771 36.70% 3.30% 19 Poland 72,912 11.80% 0.80% 20 Czech Republic 468,599 81.20% 5.10% 27 Sweden 74,580 25.80% 0.80% 28 Austria -37,683 -16.40% -0.40% 29 Portugal -33,098 -15.30% -0.40% 30 Ukraine 43,766 20.60% 0.50% 31 Romania 44,078 22.60% 0.50% 32 Slovenia -45,792 -25.70% -0.50% 34 Slovakia 689,058 428.80% 7.60% 35 Hungary 99,518 67.30% 1.10% 37 Netherlands -115,121 -100.00% -1.30% 38 Uzbekistan -2,244 -2.10% 0.00%  EU/EE Top 20 Total Assembly 2,756,169 13.70% 30.30% Global Total Assembly 9,103,249 14.50% 100.00% EU/EE Top 20 (% of Global Total ) 30.30%

   Source: PwC Automotive Institute / AUTOFACTS Global Light Vehicle Outlook (2006 Q3 Release)

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