Bohdan Wojnar: The automotive industry has hit the ceiling. But there is no threat of recession

Bohdan Wojnar: The automotive industry has hit the ceiling. But there is no threat of recession

Can the automotive industry continue to grow or hit an imaginary ceiling? And when will the massive transition to electromobiles take effect in the Czech Republic? Bohdan Wojnar, Member of the Board of Škoda Auto and President of the Automotive Industry Association, is not only responsible for such questions.

"The growth rates of the automotive industry are regionally different, but if we focus on the Czech environment, we came across a legendary ceiling," says Bohdan Wojnar, according to which there are several reasons.

These include the geopolitical dimension, rising uncertainties, Brexit, the US-China debate, the slowdown in some Western European markets, the situation in Germany, but also Czech capacities related to labor market depletion and the inability to achieve greater economic potential.

Last year, the Czech automotive industry recorded a record year, but this year production is stagnating. How serious is the economic situation? “Recession is a strong word. I would not compare it to the recession we experienced in 2008, which had deep fundamentals, "he assures.

Charging stations are key

Wojnar mentioned earlier that three major trends are moving the automotive industry - digital mobility, electric cars and autonomous driving. How is the Czech Republic ready for the new automobile era?

It's about volume, speed and data sharing, and about open infrastructures. If you travel from Prague to Brno, you will not expect to see your network drop out several times during the trip, ”he points out.

In doing so, the Automotive Industry Association appeals to the government to remove barriers to the development of electromobility. The charge point density is, according to Wojnar, a key parameter. "By 2025, a relatively large number of charging stations will be missing unless we change the approach," he warns.