Slovakia could exceed the annual production level of one million motor vehicles only at some point beyond 2013, thus further reinforcing its position of the world’s biggest per capita car producer. There are three major passenger car manufacturers in Slovakia, includingKIA Motors Slovakia, Volkswagen Slovakia and PCA Slovakia, and more than 830 automotive tier-1 and tier-2 suppliers.
Motor Vehicle Manufacturing in
? Production Developments © MARKETiN CEE s.r.o.
? www.marketincee.com Production Forecasts
? Key Players
MOTOR VEHICLE MANUFACTURING IN SLOVAKIA
In 2008, 70 thousand new cars were sold in Slovakia, up 17% on 2007 (ACEA 2009). Since 2003, vehicle sales have
grown annually by 3.2%, which is better than the EU average growth of 1.4%. Slovakia is the 20th largest market in
the EU. Based on the first five months, sales of new cars during 2009 should reach about 55 thousand, up more than
20% on 2008. This positive number, means that Slovakia is one of the few EU countries showing growth of car sales
in 2009. (Acea, 2009)
Imports of used vehicles is important as well. Imports increased substantially after Slovakia?s accession to the EU,
though no figures are available.
The automotive parts industry in the country has flourished with the increase in automotive production. Automotive
parts production reached EUR 8,294.6m in 2007, with the bulk of output headed for the Volkswagen manufacturing
plants. Major automotive parts manufacturers include Delphi (US), Dura (US), Johnson Controls (US), Faurecia
(FRA) and Visteon (US).
Total motor vehicle production has been growing annually at a healthy compound growth rate of 26.7% between
2004 and 2008. Since there are no trucks or buses manufacturers, the total vehicle production equals the production
of passenger cars. The year-on-year growth of only 0.8% in 2008 shows the slowing down pace of car production in
Slovakia, reflecting the diminished global demand.
FIGURE 1 SLOVAKIA: Motor Vehicle Production 2004 - 2008
Volume (in pcs.) 2004 2005 2006 2007 2008 08/04
Passenger cars* 223 542 215 349 295 390 571 071 575 776 26.7
Source: OICA; Automotive Industry Association of the Slovak Republic (AIA SR). Note: * There are only passenger cars produced in Slovakia, no other
types of motor vehicles.
Our very conservative estimate is that the car production in Slovakia will plummet this year by 27.3% due to global
economic crisis. But it should continue to grow again in the coming years. We forecast a compound annual growth
rate of 20.6% in the period of years 2009 through 2013.
FIGURE 2 SLOVAKIA: Motor Vehicle Production Forecast 2009 - 2013
Volume (in 1000 pcs.) 2009 2010 2011 2012 2013 13/09
Total MV production 418.7 595.7 722.0 821.6 886.2 20.6
Source: Data for 2009, 2010 & 2012 are CSM Worldwide forecasts; data for 2011 and 2013 are MARKETiN forecasts.
The strong growth forecasted is depicted in the FIGURE 3.
MARKET BRIEF: Motor Vehicle Manufacturing in Slovakia ? September 2009 Page 2 of 5
FIGURE 3 SLOVAKIA: Motor Vehicle Production 2004 ? 2013 (in thousand pieces)
Source: Data for 2004 to 2008 are actual consumption data from OICA & AIA SR; data for 2009, 2010 & 2012 are CSM Worldwide forecasts; data for
2011 and 2013 are MARKETiN forecasts.
There are three major car makers in Slovakia: KIA Motors Slovakia s.r.o., Volkswagen Slovakia a.s. and PCA
FIGURE 4 SLOVAKIA: Overview of Major Makes Manufactured in Slovak Plants
Company Group/JV Plant Location Type of prod. Makes (Models)
KIA Motors Slovakia s.r.o. Hyundai-Kia ?ilina Passenger cars Kia, Hyundai*
Volkswagen Slovakia, a.s. Volkswagen Group Bratislava Passenger cars Audi,VW, Porche, ?koda
PCA Slovakia, s.r.o. PSA Peugeot Citroën Trnava Passenger cars Peugeot, Citroën
Source: ACEA; MARKETiN. Note: * Production of a new model of this make should be launched in 2010.
Although Volkswagen was the largest car manufacturer in Slovakia in 2007, KIA Motors seems to outpacing this
German manufacturer in Slovakia.
FIGURE 5 SLOVAKIA: Motor Vehicle Production by Manufacturers 2004 - 2008
Volume (in pcs.) 2004 2005 2006 2007 2008 ?08 Share
Passenger cars - total 223.5 215.3 295.3 571.1 575.8 100%
KIA Motors Slovakia s.r.o. 0.0 0.0 4.6 145.0 201.5 35%
Volkswagen Slovakia, a.s. 223.5 215.3 238.7 248.5 187.9 33%
PCA Slovakia, s.r.o. 0.0 0.0 52.0 177.6 186.4 32%
Source: MARKETiN estimates based on various data published by car manufacturers and AIA SR. Data for 2008 are actual data as published by
SITA?s newswire. Note: *PCA Slovakia s.r.o. is PSA Peugeot ? Citroën joint venture.
KIA Motors Slovakia s.r.o. manufactures such models as Kia Cee?d and Kia Sportage, while the production of
Hyundai ix35, a brand new model, is scheduled for launch to the beginning of 2010.
MARKET BRIEF: Motor Vehicle Manufacturing in Slovakia ? September 2009 Page 3 of 5
KIA Motors Slovakia s.r.o.
Address P.O.Box 2, SK 01301 Tepli?ka nad Váhom
Production Launch 2006
Manpower 2 700 people
Production/Assembly 201.5 thousand cars (estimate); Annual Capacity: 300 000 cars
Makes (Models) HYUNDAI (Tucson ? fased out, ix35 planned for 2010), KIA (Sportage-
fased out, CEE?D,)
Kia is the youngest of car manufacturers in Slovakia. Most of the cars produced in Kia consist of Kia cee?d five door
version. Kia Motors Slovakia has about 55% of its suppliers coming from Slovakia, and the remaining part is from
Europe. Almost the whole production of Kia is exported, only 2% remain in the country..
Volkswagen Slovakia, a.s.
Address ul. Jána Joná?a 1, Devínska Nová Ves, SK 843 02 Bratislava 49
Production Launch 1993
Manpower 10,000 people in Bratislava, 700 in Martin (gear plant) & 30 in Ko?ice
Production/Assembly 187.9 thousand cars (estimate); Annual Capacity: 280 000 cars
Makes (Models) VOLKSWAGEN (Polo, Touareg, Up!*), PORSCHE (Cayenne ? only body),
AUDI (Q7), SKODA (Octavia-fased out in 2009, Up!*), SEAT (Up!*)
* New small car Up! will be available under 3 brands. Its launch is planned for early 2011.
Slovakia?s development into one of the world?s most important automotive hubs began in the early 1990s, when
Volkswagen decided to establish a factory for car production near Bratislava. Since then Volkswagen has become the
country?s largest industrial concern and its leading exporter (accounting for about 19% of total export revenues in
2004). In May 2007 the company passed an important milestone in the number of VW cars produced. Since the start
of production, it has now produced more than 2 million cars in Slovakia. Volkswagen?s entry into the Slovak market
has also attracted other companies and has contributed to strong growth in the car components industry, which
increased the value of its output from EUR 621.4m in 1998 to EUR 8294.6m in 2007.
In May, VW confirmed that it would produce its new Up! model at its Bratislava plant. The model, part of its New
Small Family range and available in 3- and 5-door versions, is available under the VW, SEAT, and ?koda Auto
brands and should be launched worldwide in early 2011. The addition of the Up! could increase capacity at the plant
by 30%. The automaker currently builds the VW Touareg, Porsche Cayenne and Audi Q7 models in the Slovak plant.
PCA Slovakia, s.r.o. (PSA Peugeot Citroën Slovakia)
Address Automobilová ulica 1, SK 917 01 Trnava
Production Launch 2006
Manpower 3 408 people (in 2008)
Production/Assembly 186.4 thousand in 2008 (estimate); Annual Capacity: 300 000 cars
Makes (Models) PEUGEOT (207), CITROËN (C3 Picasso, new small Citroën is in
preparation - its launch is planned for 2010)
PSA Peugeot-Citroën entered Slovakia in 2003 after signing an investment agreement with the Ministry of the
Economy. The French car producer plans to assemble 450,000 cars yearly in its production facility located just
outside of Trnava once it starts using the full capacity of the plant. Another 300,000 finished cars will leave the
premises annually of Kia Motors in ?ilina.
MARKET BRIEF: Motor Vehicle Manufacturing in Slovakia ? September 2009 Page 4 of 5
This is just a brief excerpt from one of our projects. If you need more
information about this market, please contact:
Mr. Pavol Kopec (PhD.)
CEO & Senior Consultant
MARKETiN CEE s.r.o.
903 01 Senec
Pavol Kopec, Ph.D. - Director & Senior Consultant
As a CEO and senior consultant at MARKETiN CEE,
Pavol has led and conducted numerous market research,
competitive intelligence and strategy consulting projects,
especially for leading global companies from heavy-
industry and related business-service sectors, and
assisted them in entering Slovak, Czech and other CEE
MARKETiN CEE is a business development consultancy using
customized market research and competitive intelligence to provide clients
with relevant information and knowledge on markets, industries and
companies in Central and Eastern Europe (CEE).
Our team not only recommends the best corporate and business
strategies and marketing practices, but can also help with their
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For more information about MARKETiN CEE, please visit our website:
DISCLA IMER: Whilst every possible care has been taken in the preparation of this document, we do not hold ourselves responsible for any
expressions of opinion or error or omission, or any action resulting therefrom. All statements in this press release are based on information available to
us as of the date hereof, and we assume no obligation to update these statements. No part of this publication may be reproduced without written
MARKET BRIEF: Motor Vehicle Manufacturing in Slovakia ? September 2009 Page 5 of 5