Czech Republic 2023. Auto Market Rally (+15.4%) Sustained By 12 Month Positive Streak

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The 2024 BMW M3 Cs
The 2024 BMW M3 Cs

Czech Republic Autos sales in 2023 closed at 220,027, a 15.4% increase compared to last year. With December reporting a 3.5% growth, the year closed with a perfect positive monthly streak.

Market Trend and Outlook

Spillovers from Russia’s war of aggression against Ukraine have derailed the Czech Republic’s post-pandemic recovery. Inflation is high and a tight macroeconomic policy stance is needed to restore price stability. The Czech labour market remains strong. The unemployment rate is low, and the employment rate and job security are high. However, severe labour and skills shortages are a major obstacle to growth.

The Czech economy remains highly energy intensive, still relies heavily on coal and records high greenhouse gas emissions. Major investments are needed to alter the energy mix and to improve energy efficiency. More ambitious environmental policies and an improved investment climate could help make growth more sustainable.

Despite overall economic growth stagnating, in 2023 the Czech Auto Market maintained steady growth, with total sales reaching 220,027 (+15.4%). The month of December continued a 12 month positive streak with 14,995 new sales (+3.5%).

Looking at cumulative data up to December 2023, brand-wise Skoda ranked in 1st position with 77,490 new sales (+23.2%), posting a huge lead on the runner up Hyundai, with only 20,068 registrations (+7.9%). Volkswagen in 3rd reported 18,938 sales (+18.2%) in front of Toyota with 17,435 sales (+42.1%) and Kia in 5th with 11,424 (+11.9%).

Mercedes rose 2 spots into 6th with 8,642 sales (+17.9%), followed by Dacia -down 1 spot- at 7,830 (-14.9%), BMW -up 2 spots- with 6,037 units sold (+30.6%), Ford at 5,655 sales (-23.6%) and Peugeot -down 1 spot- with 4,360 registrations (-10.9%).

Looking at specific models the top two best sellers were held by Skoda: in 1st ranked the Skoda Octavia up 56.9% in year-on-year sales, followed by the Skoda Fabia down 18.0%.

Medium-Term Market Trend

The Czech auto market from 2010 to 2017 presented an overall uptrend, reporting negative yearly variations only in 2012 (-3.5%) and 2013 (-9.0%). From 2014 to 2017 the market reached higher all time highs 4 years in a row, ending 2017 at a maximum of 266,753. In the following years the trend reversed, with 2018 resulting in a 2.4% loss and 2019 a -5.5% variation that would bring sales down to 246,033. 

The arrival of the pandemic in 2020 caused the Czech car market to fall further, dropping 19% to 199,025 sales.

Following the Covid-19 crisis, in 2021 the market recovered 4%, just enough to get back above the 200k mark. The good news did’t last long, with sales falling 6.9% to 190,663 in 2022. A combination of factors are behind the current industry struggle: the disruption in the global supply chain caused by a lack of raw materials, in particular for the production of microchips and Governments push towards Evs, an expensive alternative for low income consumers.

Tables with sales figures

In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 models.

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