The automotive industry, particularly in Slovakia, is a key driver of economic growth, with factors such as a heritage of engineering production, a skilled workforce and a strategic geographic location contributing to its success. However, the sector faces significant risks in Slovakia.

To assess the challenges and opportunities facing the Slovak automotive industry, the authors interviewed key stakeholders, including representatives of automotive OEMs, suppliers, government experts and financiers. Through these interviews and other analytical work, they prepared a study that revealed that the Slovak automotive industry is undergoing a multidimensional transformation, with actors acknowledging and preparing for risks to varying degrees.

The document entitled “Repurposing Slovakia’s Automotive Industry for a New Era of Geo-Economics” analyses the current challenges and opportunities for the Slovak automotive industry.

  • The authors are Soňa Muzikářová and Viliam Ostatník, who worked under the auspices of the Centre for International Private Enterprise (CIPE) and the Adapt Institute.

The document is divided into several chapters:

  1. Introduction – introduces the aim and significance of the study.
  2. The impact of geo-economic challenges on the Slovak automotive industry – analyses the main factors affecting the industry.
  3. The pursuit of public-private tandem – examines the need for cooperation between government and industry.
  4. Conclusions and way forward – provides recommendations and possible future steps.

The study identified several key points:

  1. Economic vulnerability
  2. Foreign investment dynamics
  3. Dynamics of decision-making
  4. Transition strategies
  5. Supply chain challenges
  6. Energy and charging infrastructure
  7. Chinese competition
  8. Competitive advantages

The report highlights the primary need for a holistic approach that encompasses economic, political and technological strategies to ensure the resilience and competitiveness of the Slovak automotive industry. Addressing issues related to policy continuity, workforce development, infrastructure, energy policy, R&D and supply chain resilience are key to the future of the industry.

Thanks also to our partner Center for International Private Enterprise (CIPE), this study offers valuable insights and recommendations that can stimulate cooperation between public and private actors not only in Slovakia but also in the wider Central European region.
Read the report or listen to our podcast about the future of Slovak automotive industry

 

As part of this project, in early May 2024, we organised a public debate on the topic “Slovak automotive industry is facing a loss of competitiveness and resilience.”

The debating speakers were Jakub Berthoty (attorney at law, representative of the Association of Collectors of Historic Vehicles of the Slovak Republic), Ján Oravec (MP of the Slovak Parliament for SaS), Alexander Matušek (President of the Association of the Automotive Industry of the Slovak Republic) and Maroš Halama (representative of the Slovak Republic in the Batteries European Partnership Association (BEPA), Volt Slovakia party).

The debate was moderated by our analyst and author of the above mentioned study Viliam Ostatník.

This report and the public discussion were produced with the support of the Center for International Private Enterprise (CIPE). The views expressed in this report represent the opinions and analysis of the authors and do not necessarily reflect the views of CIPE or its staff.