By completely suspending exports to Russia, Czech carmakers could lose more than 20 billion crowns a year. These are deliveries of parts for local factories, in particular Škoda Auto, but also for the export of finished cars. This is apparent from data from the Automobile Industry Association (SAP) and the Czech Statistical Office (CSO).
Škoda Auto and its parent company Volkswagen have announced the suspension of all activities on the Russian market, including the import of cars and their production in local factories. ” In 2020, exports of finished vehicles to Russia amounted to 360 million crowns and exports of components to approximately 22.5 billion crowns. Most of the volume of parts consisted of Russian-made Škoda auto components. ” Vojtěch said Severýn, spokesperson for the automobile industry association. According to Petr Knap, EY’s automotive partner, the current conflict threatens a complete loss of sales in the Russian market for Western suppliers.
“They are happy to gradually replace them with Chinese and possibly Indian producers. In terms of overall impact, the disruption of major subcontracts and raw materials from Ukraine and Russia could be even worse. If the situation is not resolved within a few weeks, the damage could be huge and the effects in terms of lost production volumes, delays in deliveries and further increases in inflation will be significant “. At the same time, the war in Ukraine affects the domestic Škoda Auto due to blocked supplies of 13 Ukrainian suppliers. According to ČTK, Toyota and Hyundai, two other automakers producing cars in the Czech Republic, do not take parts from Ukraine or Russia and production is running at full capacity.
Source: www.idnes.cz
Sources of images: Storyset.com
