ZAP: Car Output in Slovakia Rose to 1.07 million in 2025

Bratislava, 13 January (TASR) - According to preliminary results, Slovakia produced 1.07 million cars in 2025, compared to roughly one million cars in 2024, representatives of the Slovak Automotive Industry Association (ZAP) reported at ZAP's annual press conference on Tuesday, estimating vehicle production in 2026 at 1.02 million, followed by 1.08 million in both 2027 and 2028. According to ZAP president Alexander Matusek, annual production with three carmakers in the past was comparable to the current level with four manufacturers. "Looking ahead, we can see that in two years the output of five carmakers might only be as high as what three manufacturers were able to produce in the past. This tells us that we've failed to translate the opportunity created by attracting more producers to Slovakia into higher vehicle volumes, revenues or economic performance," stressed Matusek. Last year, he noted, Slovakia produced 196 vehicles per 1,000 inhabitants, with the automotive sector accounting for approximately 52 percent of total industrial output. "What we're seeing is a decline across the entire industry. We expect the automotive sector to fluctuate this year at around the same levels as last year. We're concerned that overall employment is falling despite relatively solid revenues and production volumes. However, with a decline in employment in the carmaking industry as such, this suggests that we're producing more efficiently, but it's also one of the signals that it perhaps should be the other way around," he said. According to Matusek, payroll taxes in Slovakia remain too high. "This is what the Organisation for Economic Co-operation and Development (OECD) has been saying - we've been heading in the opposite direction for a long time, and Slovakia has stalled when it comes to catching up with advanced economies as well. The only thing we can do is to reduce the cost of labour because we have long ceased to be a country with cheap labour," explained Matusek. Companies in Slovakia are curbing their investments, he stated, adding that no new investments are currently underway, while companies are primarily focusing on maintaining existing facilities. "We must actively seek to regain the trust of investors," said Matusek. According to him, the automotive industry in Slovakia won't disappear overnight, but it will slowly fade away. "Unfortunately, this process has already begun. Our warning is that this process must be reversed. Restoring our competitiveness must be our main task, and we must regain it," stressed Matusek. jrg/df