The automotive industry is one of the key industries and a driving force of the economy in Slovakia. Slovakia is the world’s biggest car producer per capita, as well as the 7th biggest car producer in the EU, and 20th in the world. Almost every year, over 1 million cars are manufactured in Slovakia. The vehicle production accounts for 12% of the whole GDP and 35% of the exports in Slovakia. The industry is the source of employment for more than 80,000 people in the country.
|Total Area:||49,035 km2|
|Member of:||European Union, Eurozone, Schengen Area, OECD, WTO, NATO|
The automotive industry has been growing since the declaration of Sovereignty of the Slovak Republic in 1992. It has attracted a lot of foreign direct investment. Bratislava, the capital city of Slovakia, Trnava, Žilina, Martin, and Nitra are the main industrial sites for automotive production. More and more car component producers shift the sites of their main operations to Slovakia. Today, the country is working on the development of the industry such as implementing the latest technologies on the construction of the new plants and increasing the productivity and the value of the production. Although the country produces high-quality products that are not being categorized as low-cost, with its highly-qualified workforce it is still relatively cost-effective in its region and in Europe in general.
Slovakia also plays an important role as a supplier of high-quality products to other plants in Europe. Its strategic geographic location not only enabled Slovakia to be the center of car production but also the main country in the supplier network.
Four major worldwide known automotive companies operate in Slovakia: Volkswagen since 1991 in Bratislava, Martin, and Stupava, PSA (Peugeot Citroën) since 2003 in Trnava, and Kia Motors since 2004 in Žilina and Jaguar Land Rover in Nitra since 2016.
Slovakia has grown to become one of the leading car producers in the world. The automotive industry has a promising future with recent investments in technology to innovate the industry. The country is already in the position to produce more advanced cars with the electric drive that is predicted to take over 15 percent of the whole production by 2025.