Car production fell by 8% in 2024 and investors put on hold new projects due to shifts in foreign policy
Car production in Slovakia fell by 8% to 993,000 last year, the local automotive union ZAP reported. It expects production to rise to 1.15m vehicles this year, which would top the previous record year of 2019 (1.11m). Kia's plant output was flat last year at 351,000, Volkswagen increased by 12,000 to 341,000 and Jaguar Land Rover was close to capacity at 150,000 cars, but Stellantis cut production by 110,000 to 150,000 cars. Once the new models are fully ramped up, Stellantis is expected to produce around 400,000 cars a year. Volvo's new car plant will launch production in 2027. (dennikN.sk)
In a ZAP survey, half of foreign investors in the automotive sector say they have put investments on hold due to the shift in foreign policy by the current government and rising costs. Moreover, the government is ignoring ZAP's demands to support the sector and electro-mobility. Thus, Slovak EV sales remain the lowest in the EU. However, the government has improved access to the labor market for foreigners.
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