Car production jumped 10 percent last year in the Czech Republic despite the lingering effects of the pandemic, chip shortages and an energy crisis.

The Czech car industry is expecting a continued recovery in 2021, building on a strong performance in 2020 despite the challenges posed by the COVID-19 pandemic.

According to the Czech Automobile Industry Association (AutoSAP), the country’s car production increased by 12.8% in 2020, reaching a total of 1.3 million vehicles. This was driven largely by strong exports, with around 90% of the country’s car production going to other countries.

The Czech car industry is also expected to benefit from growing demand for electric vehicles (EVs). The country has been investing heavily in EV production and research, with a number of major car manufacturers setting up EV production plants in the country.

The Czech government has also introduced a number of incentives to encourage EV adoption, including grants and tax breaks for EV buyers. This has helped to increase EV sales in the country, with EVs making up around 5% of new car sales in 2020.

However, the Czech car industry still faces a number of challenges, including a shortage of skilled workers and increasing competition from other countries. The industry will also need to adapt to new emissions regulations and changing consumer preferences.

Despite these challenges, the Czech car industry is expected to continue to recover and grow in 2021, driven by strong exports and growing demand for EVs. The industry is also expected to benefit from continued government support and investment in EV production and research.