Suppliers set CEE on firm foundations
By Vladislav Vorotnikov2020-01-08T10:52:00
In the decades since the end of the Cold War, Central and Eastern Europe (CEE) has been attracting automotive components suppliers by virtue of its cheap labour, low taxes and convenient geographical location. Now, the region is aiming to maintain or even build on its gains in the face of vehicle electrification, rising global competition and other challenges.
The automotive components industry of four key CEE countries, Poland, Slovakia, Hungary and the Czech Republic, comprises around 550 tier one suppliers, according to consulting agency CEAuto, which is based in the region. There are also between 100 and 150 tier one suppliers in Austria, according to government statistics.
CEAuto estimates that the number of tier one parts suppliers, both major international corporations and local companies, amounts to approximately 130 in Hungary, 120 in Slovakia and 150 in both the Czech Republic and Poland. “It is the largest industry in the Czech Republic and Slovakia, accounting for about 9% and 12% of GDP, respectively, while in both Hungary and Poland it accounts for 4% of GDP,” says Pál Négyesi, managing director of CEAuto.
In general, the industry in the CEE region is optimistic about the near future. A study by PWC showed that 80% of automotive companies in Austria anticipated sales growth in the coming years. This was the verdict in spite of some serious threats, which these suppliers also acknowledged in their survey responses.