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Czech Republic Car Industry Grew One-tenth during Jan-May 2008
Jun 24, 2008

The Czech Republic car industry grew by one-tenth in the initial five months of 2008 as sales of both passenger and utility cars increased by 8.65% and 14.5% respectively.

Car Importers Association (SDA) released data on sales of passenger and utility cars in the Czech Republic for the first five months (Jan-May) of 2008 where it rose by one-tenth to reach 85,682 Vehicles, as reported by
PragueDailyMonitor.

The SDA said that the passenger car sales increased by 8.65% to 59,660 Units whereas light utility vehicles witnessed 14.5% growth to reach 26,022 Units during January-May 2008. Czech Republic’s top car manufacturer Skoda Auto sold the highest number of vehicles in both the categories with 6,696 Units in light utility vehicles and Ford Motors ranked the second highest seller of passenger cars with 3,997 Units.

The growth in the Czech Republic’s car industry got support from the increased wages, rising employment and productivity in the country. Industrial boom has not only increased employment but also positively impacted the wages.

Besides, the rate of average labor productivity has increased by a third against wages during the reviewed period (Jan-May 2008). As a result, people in the Czech Republic are increasingly buying new vehicles to maintain their lifestyle and standards that demand a car in a home.

Also, the Czech Republic is steadily being transforming into a stable European economy, attracting foreign car manufacturers to invest in the country’s auto sector. In addition, the growing network of auto dealers with 10 dealers for 100,000 people in the country facilitated customers to select the best product.

Furthermore, the competition within the Czech car market is increasing and it is giving cheaper and high quality products to people. The competition in the market has improved the finance system by which people are getting enormous finance options, and thus, the car sales have seen a decent boost.

According to a Research Analyst at RNCOS, “The automobile industry of the Czech Republic is an important and integral part of its economy. Its geographical proximity with other European countries gives an advantage to the Czech Republic to attract leading car manufacturing companies to exploit the regional market. And the automobile companies in the Czech Republic can significantly grow by introducing vehicles based on innovative technologies, like fuel efficient vehicles.”

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