The Czech automotive industry has arrived at a critical juncture. At present, it remains the undisputed backbone of the national economy as it accounts for a significant share of both GDP and employment. Yet its core competitive advantages, namely cost-effectiveness and deep integration into the EU single market, are under severe strain from high energy prices, technological disruption, intensifying global competition, and shifting consumer demand for electric vehicles (EVs).
Given the unprecedented pace of global market shifts, inaction would leave Czechia behind its regional and global competitors in the near future. In fact, the transition to EV production has become an unavoidable necessity to sustain long-term industrial competitiveness, but it also demands a profound transformation of the automotive industry, dependent on workforce alignment (which could be achieved through robust support for retraining and job security).
Shared Ground and GLOBSEC joined forces to conduct a comprehensive research project. The report, which can be downloaded at the top of this page, analyses the structural transformation facing the Czech automotive industry, a cornerstone of the country’s economy accounting for around 10% of gross domestic product and for a significant share of exports and employment. It argues that traditional sources of competitiveness – such as cost efficiency and integration into European value chains – are increasingly under pressure from technological change, rising energy costs, shifting consumer preferences, and intensifying global competition, particularly from China. In this context, the transition to the production of electric vehicles (EVs) is an economic necessity, if not an opportunity.
Our policy brief, which can be downloaded at the bottom of this page, translates findings from the report into concrete lessons for policymakers seeking to adapt the automotive sector to new realities and develop a politically viable strategy. It combines findings from desk research, expert interviews, and focus groups to align policy with industrial imperatives and public sentiment. Based on our research, we suggest that policymakers prioritise the following:
➔ Formulating a long-term National Automotive Strategy to adapt the Czech Republic’s manufacturing base to new market realities.
➔ Building a competitive and publicly trusted battery ecosystem with a clear focus on local economic benefits.
➔ Launching a comprehensive workforce transformation and development programme to support the transition.
